Litecoin remains bearish while record dormant coins move
The price of Litecoin remains ranged under $45 as bears take control, with data showing the movement of dormant coins has hit a 9-month high
Litecoin looked to have posted a decent pump against the US dollar in the last trading session, surging alongside Bitcoin to climb above $44.15. It was the highest LTC/USD price level in 30 days, the main hurdle to any upward movement coming at $45.71 over the past month.
The top three cryptocurrencies are struggling at major resistance levels, with Bitcoin finding it hard to sustain gains near $9,400 and Ethereum struggling with resistance at $245.
Ripple, now ranked fourth among the largest cryptocurrencies by market cap, has failed to rise above long term hurdle $0.20. VeChain, NEO, Dash, and Zcash are standout performers on Wednesday as of writing.
In the early trading session, Litecoin price failed to extend gains above $44 and has at press time declined to trade at around $43.33. There is a bearish trendline formed on the 4-hour chart, with bulls facing make or break moves at the 24-hour previous high.
This is the area currently seeing massive seller congestion. Here, the price is capped by the 50% and adjacent 76.4% Fibonacci retracement level of the downtrend, from highs of $45.71 to lows of $40.56.
To stop further losses, bulls need to target prices above $44.50, a key resistance line that could see a rally to highs of $46 to open up a revisit of $50.00.
The 7th largest cryptocurrency by market cap has touched a low of $43.20, with bulls likely to rely on a strong support base at around $42.80.
A breakdown will see $41.50 serve as the next support level, which is currently formed on the daily chart.
Looking at the daily chart, Litecoin price is poised at $43.50 and what happens in the next few sessions will provide further clues as to whether bulls have the energy to push for $45 or whether sellers will remain in control to see LTC/USD and LTC/BTC dip.
According to the on-chain data analytics firm Santiment, the movement of dormant coins by Litecoin holders has hit a 9-month high. The statistic shows that users have moved a significant amount of coins between addresses.
Movement of previously idle coins in large quantities has in the past been a precursor to increased volatility. The number of active addresses has however dropped after surging to multi-month highs in early June. But the top 100 Litecoin addresses still hold the most coins, currently nearly 41% of active supply.
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