Concerns about the future of their investments in Litecoin persist after the altcoin dropped to a new low to start the week, mirroring the gloomy market sentiment of the previous week. Despite a brief increase, LTC’s near-term future remained uncertain.
After a week of decline, Litecoin is once again testing the ascending support level at which it found stability earlier this year. This represents a portion of the price channel for the token over the past eight weeks. Moreover, the alternative has repeatedly retested this support. Moreover, a recent retest reveals weak signals.
Litecoin pushed below the support level during the August 19 trading sessions, when it reached its crash’s apex. Since then, the token has traded along this line. However, the price has significantly lost its strength and ability to persist beyond this point.
litecoin Weak Support Indicate Future Events?
At the time of publication, LTC was trading at $55, indicating that investors were nervous about the upcoming change. For example, addresses with over one million coins have maintained stable balances over the past twenty-four hours. This demonstrates their willingness to observe the next market movement before executing trades cryptocurrency.
In the interim, addresses with 1,000 to 100,000 LTCs have experienced outflows over the past two days. The same group of people moved quickly to accumulate near the most recent bottom, then began cashing out their gains. Despite the fact that Litecoin has yet to recover from the support level, its on-chain volume has increased significantly since August 21.
This could suggest that retail investors have amassed at the support line in large numbers. However, the retail sector has the least impact on space. This explains why the token’s upside is restricted. In addition, they provide liquidity for short-term profiteers to exit the market.
Those looking to get into the market with new wallets might have found a good entry point at the support level. This would explain why the number of new and active addresses has increased over the past two days. In addition, the absence of a substantial uptrend indicates that the addresses were occupied by retail buyers with restricted purchases, reflecting the volume decline. Their buying momentum was canceled out, however, by the already robust selling activity at the area prices currently are.
Investors in LTC should proceed with caution, given the cryptocurrency s recent struggles near its support floor and the relative inactivity of top whales. The market is still capable of fluctuating in both directions. To prevent bears from continuing to suppress the price of rice, bulls should ensure a rebound. Interested parties may wait for the fog to dissipate.