- Litentry [LIT] showcases a remarkable 26% rally, with potential bullish indicators suggesting further upswing.
- Contrasting CVD data hints at potential selling waves, urging cautious optimism among traders.
Navigating Litentry’s [LIT] Price Dynamics
In a surprising turn of events, Litentry [LIT] registered a significant 26% gain on 13th August, pushing its price from $0.65 to $0.83. The momentum continued until 14th August, briefly touching $0.859 before experiencing a retracement. While this pullback is deemed healthy in the trading world, the overall high-timeframe structure indicates bullish sentiments.
Altcoins, BTC, and LIT: The Broader Picture
August has predominantly painted a bearish picture in the market sentiment. With most altcoins grappling with losses, Bitcoin [BTC] remained stagnant around the $29.4k mark, though it once climbed to $30.2k. Meanwhile, Litentry continued its downtrend from 24th July until a significant spike on 13th August. This rally was so profound that it shifted the market dynamics to bullish, even on a one-day chart, breaking the previous lower high.
Two key indicators, the On-Balance Volume (OBV) and the Relative Strength Index (RSI), supported this bullish narrative. The OBV showcased a sharp rise, indicating an increase in buying volume. At the same time, the RSI surged to a staggering 90, reflecting the abrupt bullish momentum.
For those pondering about re-entering long positions on LIT, the Fibonacci retracement suggests potential entry points. The 61.8% and 78.6% retracement levels stand at $0.731 and $0.696, respectively. Furthermore, a noticeable fair value gap (often termed as the white box in technical charts) in this zone signifies that a bullish rally might originate from the $0.7 mark.
However, it’s crucial to approach with caution. The rally might face invalidation if prices plummet below the 78.6% level and the aforementioned Fair Value Gap (FVG). On the optimistic front, the target for buyers hovers around the recent high of $0.859 and the extension level of $0.908 at 23.6%.
Contrasting Indicators: A Cautionary Tale
Despite the promising indicators, the spot Cumulative Volume Data (CVD) offered a contrasting narrative. This data countered the insights from OBV, revealing a substantial selling wave in LIT’s spot market over the past 24 hours. Such findings might imply a potential false breakout for LIT.
Given Litentry’s bullish technical structure, approaching the $0.7 mark on H1 and H4 charts might seem enticing for buyers. However, the presence of potential market discrepancies necessitates a cautious trading approach, emphasizing prudent position management.
