HomeNewsLTC Price Analysis: Bulls Struggle Amidst Market Correction

LTC Price Analysis: Bulls Struggle Amidst Market Correction

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  • Litecoin attempts to construct a hidden positive divergence, suggesting a comeback despite pessimistic thoughts.
  • Litecoin recovers to $81.02, up 3.90% in a day, despite a 16.03% decline in the overall market during the course of the week.

As Bitcoin (BTC) hits a new all-time high of about $74,000, the cryptocurrency market is seeing a major upswing. This is putting other cryptocurrencies, including Litecoin (LTC), in the forefront. A positive uptrend throughout the cryptocurrency market characterizes this event, which is sometimes referred to as the pre-halving rally.

The Initial Rise and Later Retreat of Litecoin 

One prominent participant in this rise, Litecoin, first surged beyond $100, overcoming significant resistance levels. This victory, though, was fleeting as the value of the currency declined, with prices falling to about $80. This dip serves as evidence that the market’s overall mood has changed, and bulls are struggling to hold onto triple-digit territory.

Despite a difficult voyage, recent data from CMC shows a modest rebound. The price of LTC is currently at $81.02, up 3.90% from the last day. However, this still signifies a noteworthy 16.03% decline over the previous week, highlighting the market’s ongoing volatility.

The market is still overwhelmingly bearish, but proponents of Litecoin are still trying to create a covert bullish divergence after being rejected at critical resistance levels. Lower-than-average trading volumes and a cautious optimism among traders are characteristics of these recovery attempts.

The Regulatory Environment

A recent ETHNews report detailed efforts by the IRS and Chainalysis to monitor and tax transactions involving popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin, with a focus on U.S. wallets, further adding to the market’s complexity.

This regulatory scrutiny is changing the investment landscape, affecting trader sentiment and possibly changing market dynamics.

The weekly chart for LTC is still bullish in spite of the present difficulties. Important metrics, including the Ichimoku Cloud, have become positive, pointing to a possible change in market attitude and tendencies.

The RSI suggests that bulls might still be in control and points to a potential comeback above $100 while holding its place within an ascending trend line.

Source: Trading View

In the future, bulls in Litecoin seem ready to test and possibly even surpass significant resistance levels. A strong break above $101 can result in additional increases in the direction of $115 and possibly even a major resistance at $145.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628