Litecoin bulls have displayed weakness signals around the $60 value area, where LTC has encountered resistance amidst its recovery phase. Nevertheless, the alternative token has escaped a massive correction by keeping its momentum beyond the 50-day MA.
Litecoin has steadied above its 50-day Moving Average for nearly ten days. While publishing this content, the altcoin traded at $59.85, gaining 1.39% within the past 24 hours.
The RSI (Relative Strength Index) swayed towards the overbought territory while the Money Flow Index hovered beyond the 50-line. Meanwhile, the past-50 Relative Strength Index didn’t present a health re-accumulation signal for the altcoin.
What Hindered LTC’s Upside?
Litecoin’s massive bullish move halted around the $60 value area at the time when its 60-day inactive circulation index recorded a swift upswing.
The metric increased from 6761 LTCs on July 18 to 1.67 million by July 19. That means selling momentum worth nearly $96 million entered the marketplace.
Moreover, the active address count increased by 71,000 in the same timeframe. Contrarily, the timeframe between July 25 and July 26 saw a minor surge in inactive circulation from 7.520 Litecoin to 16,239.
On the other side, active addresses decline by more than 60,000. Nevertheless, the moved amount was less than last week. But that was enough to trigger an uptick.
The unusual actions could come from massive profit bookings following the weekly rally. However, the result was a restricted surge since the selling momentum summoned bears. Moreover, the resulting plunge has remained limited.
That shows most investors are resorting to holding their assets, maybe as long-term investments. LTC investors might prefer HODLing to sell, especially as the altcoin has gained the ‘privacy token’ status.
Litecoin’s near-term returns could excite investors, but the alternative token remains undervalued from an ATH and long-term perspective. Moreover, the alt will likely welcome declines after its latest run-up. Digital tokens rallied following the 75 basis point rate hike by Fed.
However, it seems like a dead cat bounce as retracements appear visible. Bitcoin has shown weakness around the $23K value area, changing hands at $22,933 during this publication.
Stay tuned for the latest crypto news.
