- The price of Litecoin is up almost 5% in the past 24 hours.
- However, price movements on a daily chart showed non-stop coin distribution.
As the market recovers from the aftermath of last week’s liquidity freeze, Litecoin [LTC] ranked as one of the most profitable assets in the last 24 hours, on-chain data provider Sanitation noted in a tweet.
After #crypto market caps fell industry-wide last week, several #altcoins especially scratch their way back $LTC, $XRP& $XLM. With Market Value to Realized Value metrics continuing to show that traders are in significant negative territory, don’t be surprised if the trend continues this week. pic.twitter.com/cX8q9Tcu7B
— Santiment (@santimentfeed) August 21, 2023
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According to CoinMarketCapthe coin has gained more than 3% in the last 24 hours, trading hands at around $66 per coin.
Santiment noted that the general market slump could continue into the new week, with the market value to realized value ratio of most assets suggesting that holders have continued to sell at a loss.
Despite the slight increase in the past 24 hours, the LTCs on a daily chart revealed that the coin could lose these gains in the coming days.
The flashing “Lites” do not symbolize recovery
A broader look at the price of LTC showed that the price is down 20% over the past week. As sentiment turned sour on Aug. 15, the altcoin’s Awesome Oscillator (AO) began posting downward red histogram bars.
The AO is a momentum indicator that tracks potential reversals in the market. A bullish crossover occurs when the AO moves above the zero line, indicating that momentum is turning positive. Conversely, a bearish crossover is seen when the AO moves below the zero line, indicating that momentum is turning negative.
LTC’s AO was negative, reading -18.89 at press time, suggesting that the current market is dominated by bears.
Furthermore, the On-balance Volume (OBV) of the coin has declined over the past week. The start of LTC’s OBV decline coincided with when the AO turned negative, lending credence to the above position.
When an asset’s OBV falls, it indicates that there is more selling pressure in the market than buying pressure, often resulting in an asset’s value falling.
Read Litecoins [LTC] Price Forecast 2023-24
In addition, momentum indicators were trending downwards at press time and have been positioned the same since the beginning of the month. At the time of writing, LTC’s Relative Strength Index (RSI) was 22.72, while its Money Flow Index (MFI) was 28.18.
At these values, both indicators indicated that LTC would soon be oversold if sentiment remained unchanged. This puts further pressure on the price.
Source: LTC/USDT on TradingView
