Litecoin (LTC) has been showing an excellent fightback from the start of this month. In the last two weeks, there has been a fresh decline in Bitcoin, Ethereum, and Litecoin. LTC ended August on a bearish note below the $55 price level. However, it recovered from its prices and broke the $60 mark this month. According to some observations and indicators, Litecoin can see a slight slip below $60 this week.
Litecoin Can See A Decline Again!
Litecoin (LTC) is one of the sufferers of the bloodbath in the crypto winter. Most of the top cryptocurrencies are down by 80% this year. Litecoin works on the proof-of-work (PoW) mechanism, and its price largely depends on miners’ dominance. Any kind of negative sentiment from miners would act as a price indicator of incoming bearish pressure in Litecoin’s price.
The Puell Multiple is an essential indicator to help find out the following price action if miners tend to sell off. The Puell Multiple provides the exact profitability of miners at any given range. Litecoin’s price surged this month as the Puell Multiple showed a green candle with the highest value in the last 30 days.
According to Glassnode, the high Puell Multiple shows excellent profitability for miners and indicates that miners may sell their LTC to secure their positions and avoid losses in the future. Litecoin does not look positive as investors are selling their LTC during the bear market and switching to other crypto projects to diversify their portfolios.
Litecoin’s dormancy is also moving near the bottom line of the monthly range. However, it registered some movement in the last 3 days, crashing with the resistance level after last week’s upward rally.
According to CoinMarketCap, Litecoin is currently trading near $62 with a live market cap of $4.4 billion. The price chart indicates that LTC became overbought after its bullish trend in the last 4 days. The MFI indicator suggests that LTC has already been witnessing some selling pressure this week as its price fell from $65 to $62 in 2 days.
The MVRV ratio has also formed a new candle, confirming miners’ high profitability. It also indicates the reduced profitability for investors and buyers entering the market now. If Litecoin falls below the $58 level, we can see a bearish trend ahead this month.
Conclusion
The above sentiments and observations of Litecoin may lead to a short-term correction this week. The trend line is below 50% Fibonacci retracement, which can take Litecoin below $50 as LTC faced rejection at $65. It is evidence that Litecoin is not yet ready for breakouts.
