Bitcoin’s inability to maintain momentum above the critical $28,000 threshold has triggered a wave of selling in major altcoins like Litecoin (LTC). The recent ‘Uptober’ uptrend in crypto markets now appears to be fading as leading altcoins including LTC flash red, signaling potential dips after validating a bearish technical pattern. With several on-chain metrics now flashing bearish signals, Litecoin’s price seems primed for more downside pressure from sellers.
LTC’s price dropped from $68, prompting long position holders to rush towards the exits to avoid further losses. Data shows nearly $1.6 million worth of longs were liquidated in the past 48 hours alone. This frenzied selling activity has gradually strengthened overhead resistance levels, paving the way for bearish traders to potentially seize control and reverse the positive trend.
Additionally, Litecoin’s overall trading interest and activity levels have declined sharply, as evidenced by a steep drop in the Open Interest metric to the tune of over $11 million in 24 hours. LTC’s declining volatility, which has slid from a peak of 38.4% down to 31.9% over more than a week, has been a primary driver of waning market enthusiasm.
However, after LTC touched the $63 mark, a renewed confidence boost among long-position holders was observed. The long/short ratio spiked to 0.9897, indicating an intense battle between bulls and bears. Bulls currently command 49% of longs versus 51% of short positions held by bears. As a result, LTC’s price has managed to hover steadily below the $65 level for now.
If LTC can reclaim and hold support around the $62 breakout point, it would signal the bulls have successfully converted this zone into a new launchpad. In this scenario, Litecoin’s price may initiate a recovery towards $65 and potentially $68 if the bounce succeeds. On the flip side, if prices break decisively below $62, it would suggest the market has firmly rejected higher levels. LTC may then be headed towards the next key support zone around $57.
Typically, the emergence of a bearish setup is viewed constructively by bulls, as they aim to buy the dip. However, LTC may need to retest support at $62 again before any meaningful upside materializes. The tug-of-war is likely to persist between the $62 and $65 levels in the near term.
