- Litecoin could plummet to $85 support amid intensifying overhead pressure.
- The IOMAP reveals that Litecoin correction comes after hitting a supply barrier between $93.4 and $96.2.
Litecoin has since December 11 sustained an uptrend above an ascending trendline as observed on the 4-hour chart. The recent spike above $90 occurred in tandem with Bitcoin’s spike to new all-time highs above $22,000. However, it seems LTC may not hit $100 soon due to the possibility of a correction to $85.
Litecoin hits on-chain barrier as correction looms
Litecoin is trading above the horizontal resistance of an ascending triangle pattern. Such a breakout is expected to pull LTC roughly 23% higher from the x-axis. However, Litecoin appears to have hit a wall at $95, discouraging the bulls from pushing for more gains. The psychological barrier at $100 is yet to be tested.
LTC/USD 4-hour chart
Meanwhile, Litecoin is trading at $91.8 while seeking immediate support at $90. The Relative Strength Index spears to validate the correction as it exists in the overbought area. If the price drops below the triangle’s x-axis, the bearish formation is likely to extend to the hypotenuse support around $85.
The IOMAP model by IntoTheBlock reveals the presence of a supply barrier that may prevent Litecoin from achieving its potential yearly highs. The seller congestion lies between $93.4 and $96.2. Here, roughly 13,500 addresses previously bought nearly 1.9 million LTC. Note that trading above this zone may catapult LTC to highs past $100, but the least resistance path is downwards until it is broken.
Litecoin IOMAP chart
On the flip side, the next robust support holds the ground between $81.7 and $84.7. Previously, 92,800 addresses had bought approximately 3.8 million LTC. It means that if LTC slides under $90, declines that come into the picture might extend to $85.