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- The daily time frame has remained bullish, but a pullback may occur.
- On-chain metrics and positive funding rate also highlight the bullish outlook.
Litecoin retested the bullish order block at $81.6 and rebounded to $88.6 at the time of writing. More gains are expected, and the resistance area at $104 may be reached soon. On the lower timeframes, the momentum turned bearish and indicated the potential for a small pullback.
Read the Litecoin price prediction 2023-24
Bitcoin pushed up to $23.3000 in the last few hours of trading. King also has a bullish bias, and until this changes, traders can expect altcoins to do well.
The inefficiency has been plugged and LTC is looking to rally after the command block retest
The bullish order block was formed on the daily time frame on January 10, when a drop to $85 was followed by a quick move to $90.5. This indicates that the bulls have been strong near $85. This has been proven again recently.
A pullback from the $90 mark found support at $81.6. The horizontal support level at $80.65 was also located below and served to indicate the strength of the bulls in this area. Since this retest, Litecoin has seen gains of close to 8% at the time of writing.
Realistic or not, this is the LTC market cap in terms of BTC
Low time frame charts such as 1 hour showed a bearish market structure. That in itself was not enough to suggest a dip to $85. To the north, the next major resistance lies at $93-94. $99-$107 also has a bearish order block. This area is likely to be retested given the strong bullish momentum and spot demand that Litecoin has seen in recent weeks.
OBV confirmed buying pressure as it formed higher lows since December 19th. At the same time, the RSI has formed a bearish divergence, but this does not have to happen immediately.
The average age of the coin has shown an accumulation trend but a positive MVRV could see holders reaping profits soon
Binance’s funding rate was positive, indicating that futures market participants continue to expect gains. The average age of coins of 90 days has also increased since mid-December. This indicates the accumulation stage.
The positive MVRV indicator is close to the levels it was in late November when the price fell from $80 to $65. Could this be followed by another drop?