Litecoin’s 13% Rally Faces Weekend Selling Pressure: What’s Next?
- Litecoin exhibited a promising 13% rally from September 12-13, but weekend selling pressure looms.
- Analysts suggest potential resistance points at $62.55 and $60, while a dovish Federal Open Market Committee meeting could impact Litecoin’s trajectory.
Drawing insights from a recent analysis of the LTC/USDT pair on TradingView, Litecoin showcased a promising 13% rally between September 12 and 13. However, a looming threat hovers as selling pressure during the weekend of September 16-17 could potentially challenge these gains.
The cryptocurrency experienced a brief dip to $57.8 on September 11 but swiftly rebounded to reach a high of $67.05 on September 16. At the time of this report, its value had corrected to $63.7, reflecting a 5% pullback from its recent peak.
The current price drop occurred around the H12 bearish order block (OB) zone, marked between $67.2 and $68.4. If sellers maintain momentum, the next resistance points are likely at $62.55 and then $60.
Renowned cryptocurrency analyst Alex Thornton emphasized the importance of caution, stating, “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.”
If the Federal Open Market Committee’s meeting on September 20 leans dovish, the pullback might ease around these levels, potentially leading to another upward movement. Targets for such a bullish scenario are projected at $65 and, subsequently, close to the H12 bearish OB, near $68.
The Relative Strength Index (RSI) has cooled down to the neutral 50-point mark. A decline below this level could suggest an extended selling phase. Simultaneously, the Chaikin Money Flow (CMF) index, reflecting money flow volume, has dropped below zero, indicating reduced capital inflows over the weekend.
Indicators of Buying Strength
Examining data from Coinalyze, the Cumulative Volume Delta (CVD) showed a positive tilt, highlighting buying power in the market. However, cautionary notes exist. The weekend witnessed a significant drop in Open Interest rates, signaling a subtle decrease in Litecoin’s demand. Additionally, while the Accumulative Swing Index (ASI) suggests an ongoing uptrend, a shift into negative territory could transform this pullback into a downturn.
