Litecoin [LTC]: Bears gained ground – Will bulls defend the $80 support?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• At the time of writing, LTC  was bearish on the four-hour chart 
• Open interest rates fluctuated in the past few days and dipped at press time

The crypto market continues to reel from market uncertainty. Over the weekend (6 – 7 May), Litecoin [LTC] saw elevated short-term selling pressure. It dropped from $89.7 and was close to falling below the $80 psychological level at press time. 

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Meanwhile, Bitcoin [BTC] hovered in the $27k zone after losing the $28k price range. The drop could expose LTC to more price slumps. 

Will the support check the price dump?

Source: LTC/USDT on TradingView

On the four-hour chart, the Relative Strength Index (RSI) retreated to the oversold zone after attempting to rise on Saturday (6 May). It indicated a slight improvement in demand but with an increase in selling pressure. 

Moreover, the Chaikin Money Flow (CMF) hovered below the zero mark – indicating LTC’s limited capital inflows – a bearish outlook in the derivatives market. 

As such, near-term bears could attempt to crack the support zone at $73.99 – $80.3. Below the support, LTC could see more aggressive selling and sink toward March lows of $65. 

However, a rebound could be likely if the bulls defend the $80 support. Such an upswing, especially if BTC reclaims upper price ranges, could force LTC to rally to $103 (supply zone, red). 

But the Fair Value Gap (FVG) also exists at $95.7 – $99.7 (white) and could offer some resistance. 

Open interest rates dipped slightly

Source: Coinglass

How much are 1,10,100 LTCs worth today? 

According to Coinglass, LTC’s open interest rates wavered within $340 – $350 million in the past few days. At press time, the OI dropped to $337 million – a bearish sentiment in the futures market. 

Similarly, the exchange LTC long/short ratio revealed short positions dominated 50.55% in the past four hours. Although the spread was little, short-sellers still had the upper hand at press time and could attempt to crack the $80 support. 

Source: Coinglass