- Litecoin recouped 13% from 12-13 September, but weekend sales pressures might undermine this rise.
- Key indicators suggest a possible continuation of the uptrend, but caution is advised due to certain bearish signs.
Drawing insights from a recent analysis on the LTC/USDT pair on TradingView, it’s evident that Litecoin displayed a promising 13% rally from 12-13 September. However, a looming threat exists as selling pressure during the weekend (16/17 September) stands to challenge these gains.
Litecoin’s Recent Performance
The cryptocurrency, after a dip to $57.8 on 11 September, bounced back to reach a high of $67.05 on 16 September. At the moment of drafting this report, the value had corrected to $63.7, reflecting a 5% pullback from its recent peak.
Immediate Challenges and Potential Gains
The current price drop happened around the H12 bearish order block (OB) zone marked between $67.2 and $68.4. Should sellers maintain momentum, the next resistance points are likely set at $62.55 and then $60.
“Considering the current market dynamics and external influences, it’s essential for investors to tread with caution. The next week will be crucial in determining Litecoin’s trajectory,” stated Alex Thornton, a renowned cryptocurrency analyst.
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If the Federal Open Market Committee’s meeting on 20 September leans dovish, we might see the pullback easing around these levels, followed by another upward movement. Targets for such a bullish scenario are projected at $65, and then nearing the H12 bearish OB close to $68.
The RSI (Relative Strength Index) has cooled down to the neutral 50 point. A decline below this mark might hint at a more extended selling phase. Simultaneously, the CMF (Chaikin Money Flow) index, reflecting the money flow volume over a set period, has also dropped below zero, implying reduced capital inflows during the weekend.
Indicators of Buying Strength
Drawing from data on Coinalyze, the Cumulative Volume Delta (CVD) showcased a positive tilt, highlighting the buying power in the market. But there are cautionary notes as well. The weekend saw a considerable drop in Open Interest rates, signaling a subtle decrease in Litecoin’s demand. Furthermore, while the Accumulative Swing Index (ASI) indicates a prevailing uptrend, any shift into negative territory would imply a transformation of this pullback into a downturn.
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