The USDT Dominance metric experienced a sharp pullback on October 13, but it quickly recovered. This demonstrated that market participants favoured holding Tether over the last few days. This metric has been rising throughout October. At the same time, the price charts for Litecoin [LTC] show little to no significant trend.
On the lower timeframe charts, LTC was able to break through the $54 barrier for a few days but was unable to maintain that level. Recently, the price fell below $52 and appeared to have flipped to resistance. Where will the LTC bulls next make a stand?
Litecoin does not offer a high probability buy or sell opportunity yet
Source: TradingView
Since May, Litecoin traded between the $64.5 resistance and $43.4 support. The mid-point of this range lay at $53.9. In recent weeks, Litecoin has been shackled to this mid-range value. LTC has neither been able to climb above $55, nor could it sink below the $51 mark convincingly.
At last, the market might have made up its mind. The selling pressure on 13 October forced the price as low as $49. At the time of writing, the lower timeframe key level at $52.3 was flipped to resistance. If the bears can follow through, LTC could descend to the range lows near $44 once more. Around $45, Litecoin can be examined once more to see if it offered a buying opportunity.
LTC social dominance unable to break the 0.4% ceiling
Source: Santiment
The 180-day dormant circulation saw a spike August, and once again in mid-September. The latter surge coincided almost exactly with a local top for LTC. Although this need not always be the case, a swell in this metric can be something to watch out for.
Social dominance was also something Litecoin struggled with in recent months. The dominance metric has not pushed above 0.5% since July. In recent weeks, it peaked repeatedly near the 0.41% mark. This showed that, compared to the dozens of other assets in the market, LTC was not among the most popular.
If Bitcoin slipped beneath $19k again, the $18.5k region would be tested once more. If this too gave way to the bears, Litecoin would likely follow BTC downward on the price charts.
