Litecoin investors continue to be concerned about the future of their investments, particularly in light of the fact that the alternative currency started the week off at a low after the bearish markets 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 that it broke through earlier this month. 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, trading of the token has been contained within that range. 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, the price of LTC was $55, which indicated that investors are uncertain about the forthcoming move. 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 subsequent market movement prior to executing trades.
In the interim, addresses with 1,000 to 100,000 LTCs have experienced outflows over the past two days. In a short amount of time, the same group had amassed near the most recent low, and was now cashing out some of 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 is among those least likely to impact available room. This explains why the token’s upside is restricted. In addition, they provide liquidity for short-term profiteers to exit the market.
The level of support might have been used as a staging area for the introduction of brand-new wallets. 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. Alternately, the competitive selling at the current value zones canceled out their buying pressure.
In light of Litecoin’s struggles near its support floor and the relative inactivity of top whales, investors in Litecoin should proceed with extreme caution. 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.
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