Litecoin price has staggered as the spectacular cryptocurrency rally takes a breather in the past few days. The LTC has fallen sharply even as on-chain data shows that activity remains strong in its network. It is trading at $122, about 9% below its highest point last week. This performance mirrors that of Bitcoin and other coins.
Litecoin staged a strong recovery in the past few weeks. At the time, it managed to rise by about 35% from its lowest level this year. Analysts cited the overall movement of Bitcoin for its strong performance. Other cryptocurrencies like Bitcoin and Cardano also rallied. Another notable thing is that the performance also mirrored that of American stocks like Dow Jones and Nasdaq 100.
Meanwhile, on-chain data shows that Litecoin whales have continued to accumulate the coin, which is usually a positive sign. As a result, gas prices have been robust. As shown below, data compiled by Santinent shows that transaction volume has been impressive in the past few months. Since December, it has held steady in its biggest cluster on record.
The four-hour chart shows that the LTC price has been in a strong bullish trend in the past few weeks. But recently, it has made a pullback as investors take profits. As a result, it has moved slightly below the 50-day VWMA while oscillators have pointed downwards. It has also dropped below the 61.8% Fibonacci retracement level.
Therefore, in my view, we still have a bullish trend, meaning that the current drop will be brief. I suspect that it will drop to the next key support level at $116, which was the highest level on March 1. It will then resume the bullish trend as investors eye the resistance at $200. A drop below that level will send a signal that there are still more bears in the market.
This post was last modified on %s = human-readable time difference 11:44