warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- Litecoin rejected multiple times to the $53.8 resistance in recent weeks
- Movement below $50 could encourage bears
The USDT dominance metric saw a sharp decline on October 13, but quickly recovered. This shows that market participants have preferred to stick to Tether over the past few days. Throughout October, this measure has been on the rise. At the same time Litecoin [LTC] Show little or no trend on the price charts.
This is the AMBCrypto price prediction for Litecoin [LTC] 2022
On the lower time frame charts, LTC was able to cross $54 for a few days but couldn’t stay there. Recently, the price dropped below $52 and seems to have turned it into resistance as well. Where will the LTC bulls take a stand next?
Litecoin does not yet offer the possibility to buy or sell with high probability
Since May, Litecoin has been trading between the $64.5 resistance and the $43.4 support. The midpoint of this range was $53.9. In recent weeks, Litecoin has been restricted to this mid-range value. LTC could not go above $55, nor could it go below $51 convincingly.
Finally, the market may have made up its mind. Selling pressure on October 13th pushed the price to $49. At the time of writing, the key lower level on the $52.3 time-frame has turned into resistance. If the bears can follow, LTC could drop to the lows near $44 again. Around $45, Litecoin can be checked again to see if it offers a buying opportunity.
LTC’s social dominance cannot break the 0.4% ceiling
The 180-day dormant circulation peaked in August, and again in mid-September. The recent spike almost exactly coincided with a local peak for LTC. While this doesn’t always have to be the case, swells of this magnitude can be something to watch out for.
Social dominance has also been something that Litecoin has been struggling with in recent months. The dominance scale has not exceeded 0.5% since July. In recent weeks, it has repeatedly peaked near 0.41%. This showed that, compared to dozens of other assets in the market, LTC was not among the most popular.
If the bitcoin price drops below $19K again, the $18.5K area will be tested again. If this also gives way to the bears, Litecoin will likely follow BTC lower on the price charts.