- Bearish swing structure meant investors can maintain their bearish outlook
- Short-term momentum was bullish, but a move beyond $90 may be difficult
A decision on the Litecoin [LTC] ETF application by Canary Capital is due for a decision by Monday, 05 May. In a post on X, James Seyffart, the analyst specializing in exchange-traded funds (ETFs), noted that the SEC has not delayed this application, although it could get delayed on Monday. He elaborated further, stating that LTC had a good chance of an early approval.
News of an approval could boost LTC’s bullish prospects, but traders must note that a delay appeared more likely at press time. This could keep the coin’s prices below the $90-local resistance.
Litecoin faces rejection at key Fibonacci retracement level
Source: LTC/USDT on TradingView
The 1-day chart revealed that Litecoin had a bearish swing structure, despite its bounce from $63 in April. The $96.5 swing high must be breached to turn the structure around. However, the lower timeframe structure was bullish, and the D1 Awesome Oscillator also highlighted upward momentum.
And yet, the A/D showed that buying pressure has been weak over the past month. This is not good news for investors. Furthermore, the $89.3-level represented the 78.6% Fibonacci retracement level.
LTC bulls faced rejection from this level a few days ago, and the price appeared to form a short-term range from $83.3 to $88.8. The weak demand meant that a rejection from $89 might be more likely than a bullish breakout.
The 2-week liquidation heatmap underlined the $80.3 and $91.4 regions as the nearby magnetic zones that could attract the price towards themselves. The $91.4-level was closer at press time, making it slightly more feasible as a target. The short-term momentum of Bitcoin [BTC] would likely also influence LTC.
In the coming days, the range formation is likely to remain in place. The lack of bullish conviction, combined with the liquidation levels outlined by the chart above, suggested that Litecoin will likely sweep both levels before embarking on its next impulse move.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
