- Litecoin worth hinting steep correction as TD Sequential indicator offered promote sign for fifth time in final 5 months.
- Supporting the bearish thesis are declining whale holdings, which enhance the chance of a downswing.
- An upswing may come into the image if LTC bulls handle to push previous the current excessive at $230.
Litecoin worth has seen a 20% correction after hitting a local top on February 14. This correction reveals indicators of an extension as each technical and on-chain indicators have turned bearish.
Litecoin worth primed for a downswing
Litecoin worth noticed a 100% impulse wave after bottoming on January 27. Now, the native high on February 14, alerts the top of this rally.
On February 16, the Tom DeMark (TD) Sequential indicator flashed the fifth promote sign within the type of a inexperienced 9 candlestick since October 2020.
Since this technical formation forecasts a one-to-four candlestick correction, earlier promote alerts have resulted in a 20-to-40% correction.
Therefore, buyers should assume that the current bearish indication may comply with by means of.
LTC/USDT 1-day chart
Including credence to Litecoin’s bearish thesis is the declining variety of whales holding between 10,000 to 100,000 LTC.
These whales have diminished from 420 to 415 between February 15 and 17 thus portray buyers’ pessimistic outlook of Litecoin’s bullish potential.
Litecoin holder distribution chart
Litecoin’s downswing may prolong as much as the crucial assist at $150, which is a 30% drop from its present worth.
Based mostly on IntoTheBlock’s International In/Out of the Cash mannequin, about 247,000 addresses bought almost 4.45 million LTC right here.
Subsequent promoting stress resulting in a breakdown of this assist may set off a sell-off pushing the altcoin to $130.
Litecoin GIOM Chart
Whereas the bearish situation appears doubtless and inevitable, it could possibly be invalidated if LTC bulls handle to get a each day shut above the current excessive at $230.
If this had been to occur, retail FOMO may push the coin as much as $350 or the 161.8% Fibonacci stage.
