Litecoin continues to trade at key price points despite bulls’ attempts to break out of this price range.
Litecoin attempted a range breakout, but bullish efforts were in vain as sellers returned to the market.
Market speculators are hesitant about bullish or bearish trends.
Litecoin [LTC] price volatility continued into October, with bears quickly curbing bulls’ attempts to break out of the price range.
Previously, LTC rose 6.1% on October 1, rising from $64 to $68. However, sellers responded with a similar price drop, taking the altcoin back to the $64 price area.
With Litecoin trading in a critical price zone, price volatility could be on the horizon.
The bulls and bears are fighting for control of a key price area.
On the 12-hour chart, the visible range volume profile shows that the Value Area High (VAH) and Value Area Low (VAL) are located at $93 and $57, respectively. The Point of Control (POC) at $64 shows why LTC has been oscillating in this price zone for more than two months.
POC (red) marks the price area with the highest volume in the visible range, which dates back to early June. This suggests that price action in the POC price area could have a significant impact on where LTC moves next.
As can be seen from the indicators on the chart, the market is fairly distributed. The Chaikin Money Flow (CMF) remains slightly above the zero line with a reading of +0.05. This highlights the considerable capital inflows.
On the other hand, the Relative Strength Index (RSI) is hovering above the neutral 50 mark, indicating equal buying and selling pressures.
Based on neutral sentiment, two scenarios are possible in the long term. Scenario one would see sellers push LTC towards $60, while scenario two would see buyers move towards $70.
Uncertainty remains in the derivatives market
Data from Coinalyze shows that market speculators are hesitant to make bullish or bearish moves. While funding rates are largely positive, indicating buyers are willing to bounce, spot CVD is trending lower.
This suggests a severe lack of demand for Litecoin, which could work against buyers while sellers are more likely to benefit. $LTC