Litecoin is at a pivotal moment—will it rebound from key support or face further delays in its recovery?
- Litecoin saw a slight bullish pressure but needed to close above the 200-day EMA to depict a long-term buying edge. Derivates data showed some hopes for near-term recovery.
Litecoin [LTC] recently saw a near-term downtrend after reversing from its 200-day EMA. The $62 support level retest was then met with strong buying pressure, helping LTC climb above the 20-day and 50-day EMAs.
This recent surge in buying power has presented a potential short-term edge for the bulls, but LTC still hovers around a key inflection zone.
At press time, LTC was trading at approximately $66.33, down by 1.7% over the past 24 hours.
Litecoin bulls eyeing a rebound?
Source: TradingView, LTC/USDT
The latest daily chart showcased LTC’s rebound from the $62 support level, pushing it above the 20-day and 50-day EMAs. Currently, LTC traded near these two EMAs, indicating that the price is at a critical juncture.
If buyers push prices higher from these EMAs, LTC could see a continuation of its uptrend, potentially targeting the 200-day EMA, currently at around $71.
However, if the price closes below the 20 and 50-day EMAs, LTC could be exposed to a retest of the trendline support near the $62 level, delaying recovery prospects.
While still in negative territory, the MACD indicator showed signs of a bullish crossover as the MACD line moved closer to the signal line. A definitive crossover could signal a shift in momentum in favor of the buyers.
Should either of these lines dip below the zero mark, it would hint at an increase in selling pressure.
Derivatives data revealed THIS
Source: Coinglass
Litecoin’s derivatives data showed mixed sentiment. The 24-hour long/short ratio was 0.9654, reflecting balanced trader sentiment.
However, the long/short ratios on Binance and OKX were quite notably bullish, at 2.2862 and 2.55. This indicated that traders on these platforms expect a potential upside in LTC’s price.
The open interest for LTC options declined slightly by 2.95%, suggesting a degree of caution among traders amid recent price fluctuations.
The liquidation data revealed that long positions dominated, with substantial liquidations of short positions over the past 12 hours. This indicated that the bullish momentum could still have room to grow as short-sellers have been forced to exit.
Traders should also pay close attention to Bitcoin’s movement, as market-wide shifts will likely influence LTC’s trajectory as well. For now, LTC is positioned at a critical level, and a decisive move above or below the EMAs will dictate its near-term path.
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