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© Reuters LTC’s bullish momentum falters as overbought signs emerge
- Litecoin price is rising due to bullish momentum and increased trading volume.
- The influx of BRC-20 tokens into LTC-20 could increase the activity of the Litecoin network.
- The overbought and negative RSI indicates a correction in the LTC market.
Litecoin (LTC) started the day with a 24-hour low of $78.18, but bulls quickly took control, pushing the price to $81.97 before hitting resistance. The price is currently at $80.56, which is a 1.34% increase in positive momentum.
Traders’ anticipation of an upward rally led to a 1.35% increase in market capitalization and an impressive 31.60% increase in 24-hour trading volume to $5,872,692,063 and $594,060,510 respectively.
This increase can be attributed to the excitement surrounding the entry of BRC-20 tokens into the Litecoin LTC-20, with over 840 tokens created so far. This spike in token creation could lead to more activity on the Litecoin network, increasing daily transactions and active addresses.
24-hour price chart (Source: CoinMarketCap)
The Balance of Power (BOP) value in the LTC market is currently -0.06 and rising, indicating a possible shift towards bullish momentum. When the BOP approaches zero and enters a positive zone, this indicates that buying pressure is building up, which could lead to an increase in the price of Litecoin.
Chaikin Money Flow of 0.09 and moving upwards indicates increasing buying pressure in the LTC market.
A positive CMF value indicates that there is more buying pressure than selling pressure, which could lead to an increase in the price of Litecoin and thus support the continuation of the bullish trend.
LTC/USD chart (Source: TradingView)
And with the RSI now overbought and below its signal line at 86.30, the positive momentum in the LTC market may be fading.
This overbought rating indicates that the recent price rally in Litecoin has been too rapid and unsustainable, and a correction is likely.
The Bull Bear Power Indicator (BBP) adds to the impression that the bullish momentum of the LTC market is fading. The current BBP rating of -0.020625 indicates that bears are gaining some market power, and Litecoin price may be due for a period of correction or consolidation.
LTC/USD chart (Source: TradingView)
In conclusion, while the LTC market saw significant gains, indications point to a possible correction on the horizon. Traders should watch market developments closely to cope with potential volatility.
Disclaimer: The views, opinions and information shared in this price forecast are posted in good faith. Readers should do their research and due diligence. Any action taken by the reader is at their own risk. Coin Edition and its affiliates will not be liable for any direct or indirect damage or loss.
LTC’s bullish momentum is faltering after the coin issuance’s first overbought signals appeared.
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