LTC looks poised to retire at $ 70

• Litecoin meets resistance at $ 90, delaying price action to $ 95 and $ 100 respectively.
• LTC / USD could enter a period of consolidation based on the IOMAP model.

Litecoin recently closed at $ 100 but reached a barrier at $ 95. The cryptoasset has led other altcoins such as Ethereum into the bullish cycle, as extensively explained above. A reversal appears imminent, particularly if LTC falls below the ascending wedge pattern.

Litecoin has a significant risk of losses of up to $ 70

LTC / USD is trading at $ 87 after confirming short-term support at $ 85. The immediate upside was capped at $ 90, thus delaying the recovery to $ 95 and $ 100 respectively. If the price fails to close again the day above $ 90, the selling pressure could increase, triggering a decline towards $ 70.

The daily chart reveals the formation of an ascending wedge pattern, which shows that Litecoin’s bullish trend is nearing exhaustion and a correction is just around the corner. In other words, buying pressure has eased considerably and a turnaround seems imminent. Trading below the wedge could add to the selling pressure, bringing LTC back to $ 70.

LTC / USD daily chart

The TD Sequential Indicator is likely to present a sell signal on the 3-day chart in the next few days. This signal will take the form of a green nine candle. If validated, it could lead to dips of one to four candles per day, thus validating the bearish narrative.

LTC / USD 3-day chart

Santiment, a leading provider of on-chain metrics, shows that the volume of transactions within the Litecoin network has dropped dramatically. The metric shows the aggregate of tokens and all ongoing daily transactions.

Usually, a spike in volume is followed by growth in the token’s value. On the other hand, low volumes indicate a drop in prices or a consolidation. In this case, Litecoin may decrease as a result of the significant decrease in transaction volume.

Litecoin transaction volume chart

LTC trapped between large areas of support and resistance

IntoTheBlock’s IOMAP model reveals that Litecoin is stuck between immense resistance and support zones. On the upside, the price movement was held back by seller congestion between $ 88 and $ 90. Here, nearly 47,000 addresses had previously bought about 1.8 million LTC.

Litecoin IOMAP model

On the flip side, Litecoin is on immense support zones, starting in the range of $ 85 to $ 87.8. Here, approximately 71,200 addresses had previously purchased approximately 1.4 million LTCs. The support area also rests on other huge buyer congestion zones. Therefore, it is doubtful that LTC will drop to $ 70, thus invalidating the bearish outlook.