LTC Price Analysis: Attempts Bullish Reversal, Litecoin Hashrate Rises 38% as Wallet Addresses Continue To Grow

• Litecoin had steadily declined since marking highs of $302 on Nov. 10, 2021
• Litecoin might see an oversold bounce in the near term as the RSI attempts a bounce from oversold levels
• Wallet addresses have surpassed the 118 million mark, with over 1,000,000 addresses added in the previous week

Litecoin (LTC) has adopted a softer negative trajectory since Jan. 22 when it touched lows at $96.52. Litecoin had steadily declined since marking highs of $302 on Nov. 10, 2021. Litecoin continues to mirror the Bitcoin trading action. IntoTheblock gives the 30-day correlation between the two assets as 0.94 which seems quite high. Litecoin might see an oversold bounce in the near term as the daily RSI attempts a bounce from oversold levels. At the time of publication, LTC was trading at $109.89, up 1.33% on the day. Litecoin’s hash rate has risen nearly 38% in the past year as wallet addresses continue to grow. Wallet addresses have surpassed the 118 million mark, with over 1,000,000 addresses added in the previous week.

Key Levels
Resistance Levels: $250, $230, $190
Support Levels: $150, $126, $95

LTC/USD Daily Chart: Ranging

LTC/USD Daily Chart

A slowdown in the sell-off momentum is seen as the LTC/USD price consolidates above the $105 mark. The short-term oscillators are indicating a minor increase in positive momentum, which could prolong the consolidation in the LTC/USD pair from Jan. 22. The RSI is hovering a tad above the 30 oversold levels, making attempts to creep higher.

The negative crossover of the daily moving average might pose a price bottoming as the market reaches oversold conditions. That said, a sustained rally above the MA 50 at $140 could prompt sellers to take cover, taking the heat off the 21st largest cryptocurrency. On the downside, $102 is fresh support and then $96.51 is a critical floor to safeguard the rebound.

LTC/USD 4-Hour Chart: Ranging

LTC/USD 4-Hour Chart

LTC has fairly flatlined around the $110 – $134 range where the boundary of the MA 50 and 200 are located. The RSI is attempting to climb above the 50 neutral levels and thus endorsing a modest upside bearing. Attempts in the LTC/USD pair to improve could encounter prompt upside constraints at the MA 200 around $134. If buyers push higher, resistance may then arise at the $200 range.

If negative pressures gain strength again, initial deterrence to the pair running lower is the $96-$102 recently formed base. To summarize, LTC/USD is sustaining a neutral-to-bearish tone. That said, a break below the $96-$102 floor or above the $134-$140 ceiling of the minor consolidation would need to occur to establish a clearer short-term direction.

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