Litecoin (LTC) has been steadily climbing since early September when it bounced back from the $60 support level. Currently, the altcoin is forming an ascending broadening wedge pattern as it tests the $72 resistance level.
As of now, LTC is trading at $69.98, showing a slight decrease of approximately 1% in the last 24 hours.
Important Moving Averages and Recent Market Performance
Over the past few months, Litecoin has been on an upward trend. It recently crossed above the 20-day EMA ($69.53) and the 50-day EMA ($67.95). Currently, the altcoin is hovering just below the 200-day EMA ($70.69), indicating increased buying activity.
The $72 resistance level is critical as surpassing it could lead to a target of around $76. Such a move might confirm a patterned price trajectory and trigger a short-term pullback from that resistance.
If buyers fail to break above $72, Litecoin could revisit the $68.45 support level. Further downward movement may see support levels at $63.99 and $60.61 being tested.
The MACD indicator is showing mixed signals, with the MACD line below the Signal line but both in positive territory, hinting at a mild buying bias.
A drop below the zero line on the MACD could indicate increased selling momentum. Conversely, a bullish crossover might invalidate any bearish expectations in the near future.
Overview of Derivatives Data
Derivatives data reveals a spike in trading volume, which surged by 47.32% to $170.12 million. Meanwhile, Open Interest slightly decreased by 2.06% to $249.49 million, suggesting that traders are adjusting their positions amid market volatility, potentially signaling an imminent significant price movement.
The 24-hour long/short ratio for Litecoin stands at 0.8629, reflecting a slightly bearish sentiment overall. However, on exchanges like Binance and OKX, the long/short ratios are more optimistic at 1.733 and 2.65, respectively, indicating a bullish sentiment among traders on these platforms.
On Binance, top traders for the LTC/USDT pair have a bullish long/short ratio of 2.0257, indicating a positive price outlook by major market participants.
Given Litecoin’s dependence on Bitcoin’s price movements, traders are advised to monitor the overall market sentiment before making any trading decisions.