Litecoin [LTC]: Bears gained ground – Will bulls defend the $80 support?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion

On the time of writing, LTC was bearish on the four-hour chart
Open rates of interest fluctuated up to now few days and dipped at press time

The crypto market continues to reel from market uncertainty. Over the weekend (6 – 7 Might), Litecoin [LTC] noticed elevated short-term promoting strain. It dropped from $89.7 and was near falling beneath the $80 psychological degree at press time.

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In the meantime, Bitcoin [BTC] hovered within the $27k zone after dropping the $28k worth vary. The drop might expose LTC to extra worth slumps.

Will the help test the value dump?

Supply: LTC/USDT on TradingView

On the four-hour chart, the Relative Energy Index (RSI) retreated to the oversold zone after making an attempt to rise on Saturday (6 Might). It indicated a slight enchancment in demand however with a rise in promoting strain.

Furthermore, the Chaikin Cash Circulation (CMF) hovered beneath the zero mark – indicating LTC’s restricted capital inflows – a bearish outlook within the derivatives market.

As such, near-term bears might try and crack the help zone at $73.99 – $80.3. Beneath the help, LTC might see extra aggressive promoting and sink towards March lows of $65.

Nonetheless, a rebound may very well be seemingly if the bulls defend the $80 help. Such an upswing, particularly if BTC reclaims higher worth ranges, might pressure LTC to rally to $103 (provide zone, purple).

However the Truthful Worth Hole (FVG) additionally exists at $95.7 – $99.7 (white) and will supply some resistance.

Open rates of interest dipped barely

Supply: Coinglass

How a lot are 1,10,100 LTCs value in the present day?

In accordance with Coinglass, LTC’s open rates of interest wavered inside $340 – $350 million up to now few days. At press time, the OI dropped to $337 million – a bearish sentiment within the futures market.

Equally, the trade LTC lengthy/quick ratio revealed quick positions dominated 50.55% up to now 4 hours. Though the unfold was little, short-sellers nonetheless had the higher hand at press time and will try and crack the $80 help.