Litecoin (LTC) is in a tight consolidation phase and has been firmly stuck in the $60 to $70 range since mid-August. Despite several attempts to break above the USD 70 resistance level, the bulls seem to have little aggressiveness.
According to the latest data from Mint geckoLTC is trading at $62.99, reflecting a 1.8% drop in the last 24 hours and a seven-day decline of 3.1%.
For the past few weeks, the LTC bulls have been diligently defending the August 2022 range high of USD 63, preventing a drop below this crucial support level. However, their efforts to push the price above $70 have proved futile.
Litecoin Bulls Defend Key Levels But Face Technical Challenges
A closer look at the technical indicators reveals that the bearish order book in the second half of the 20th century and the 50-day exponential moving average (EMA) pose significant challenges to the bulls.
Analysts believe that Litecoin could continue its consolidation above the USD 63 mark in the coming hours or days. Still, prevailing bearish pressures could hamper any substantial upward movement in the near term.
LTC’s struggle amid growing activity in the chain
Surprisingly, despite Litecoin’s price consolidation, the on-chain data has shown increased activity in its ecosystem. According to a separate reportIn the past four months, Litecoin’s share of global cryptocurrency payments has increased by a whopping 21%.
This suggests that despite the stagnant price, Litecoin remains a popular choice for transactions.
Litecoin market cap currently at $4.6 billion. Chart: TradingView.com
Sell Limit Orders and Bearish Sentiments
To further complicate matters for LTC, order flow tracking platform Mobchart quoted in an article analysis significant sell limit orders for $66 (3.11k LTC) and $70 (3.26k LTC) on the Binance Exchange spot market.
These levels are strategically positioned between the H4 50-EMA and the H12 bearish order book and in fact represent a formidable barrier for the Litecoin price to overcome. This adds to the growing challenges LTC bulls face in their quest to push the price upwards.
LTC seven-day price movement. Source: CoinMarketCap
In addition, sentiment around Litecoin has become increasingly bearish lately, as evidenced by a separate report showing that LTC bear rings are up 19% over the past week. This increase in bearish sentiment has likely contributed to the current downward pressure on the price of LTC.
Litecoin (LTC) remains trapped within the $60 to $70 range, with technical indicators and significant sell orders standing in the way of any substantial price movement.
Despite the on-chain business looking promising, growing bearish sentiments continue to weigh on the price of LTC, making it a challenging period for Litecoin investors and enthusiasts.
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Featured image from CMC Markets