By Franklin Smith
Litecoin has seen its bullish activity magnifying since the month started. The alternative token recovered to levels beyond $60 after closing August with bearish tendencies. Contrarily, new indications appear to confirm potential declines beneath the $60 mark.
LTC is among the few digital coins that run on a PoW (proof-of-work) mechanism. Meanwhile, miner flows have proven essential in influencing price action. Thus, any incentive for LTC miners to sell remains a crucial indicator of imminent bearish momentum.
The Puell multiple is among the indicators that could help note cases where miners meet selling incentives. That’s because the index shows the miner profitability zone at any moment. LTC’s Puell multiple ended the previous week with an upsurge, exploring its highest mark over the past 30 days.
Litecoin’s high Puell multiple suggested high miner profitability. And that could encourage selling. Moreover, the token’s dormancy remained around the low monthly range, recording some activity within the past three days. Surprisingly, that matched with a resistance mark retest following last week’s surge.
Litecoin’s Path
LTC’s four-hour chart confirmed another facet for a possible imminent retracement. The alternative token saw brief overbought conditions following a stable bullish run within the past four days. Moreover, the Money Flow Index showed emerging sell momentum. Also, the on-chain metric authorized the surging sell strength anticipations.
Meanwhile, LTC’s MVRV Ratio welcomed the week at a pivot, indicating profit-booking activities at the moment. Also, it appeared to confirm declined profitability for buyers joining the marketplace around the latest top. The sharp dip in the realized cap index confirms substantial buying momentum around the recent top.
Final Thought
The highlighted Litecoin observations authorize a possible near-term retracement for the altcoin early in the week. Nevertheless, enthusiasts can consider opposing outcomes, meaning the possibility of bullish sentiment from the new week.
Such developments would cancel possible declines, opening the path for bullish actions. Litecoin’s latest surges have displayed friction at the near-term support of $64. That can mean the alt isn’t ready for breakouts on its charts.
What are your thoughts about Litecoin’s current trajectory? Feel free to leave a reply in the section below.