TL;DR Breakdown
- Litecoin price currently at $131.22
- LTC expected to observe sideways movement across the next few hours before breaking above
- The weekly chart suggests a strong bullish market
Litecoin (LTC) price trades near the $130 price level as the bulls carried the price above the $120 mark. While LTC shows a sight retracement across the 24-hour period, the asset shows a 23 percent increase across the last seven days.
The broader cryptocurrency market sentiment is bearish across the 24-hour period, with most cryptocurrencies retracing from yesterday’s highs. However, the bullish activity is not high, and most assets record double-digit profits across the 7-day period.
Litecoin price across December
Litecoin price had a strong start to December as bulls dominated the markets to complete a V-shaped recovery to November’s high at the $90 price level. However, the bullish momentum did not last, and the price turned bearish.
Between December 2 and December 11, Litecoin price traded with a descending support line as the price descended to the $70.00 price level. The descent stopped at the $70.00 support level, and the price swiftly recovered to $80.00.
On December 16, the bulls charged as LTC rose above the 100 before noon the next day. The price consolidated at the level for a brief period before continuing its upward movement. The price crossed above the $120.00 level before the bullish momentum was stomped out by the increasing bearish pressure.
The price retraced to the $100 mark, which acted as a strong support level and enabled the buyers to fight against the bearish pressure and regain market dominance. The price recovered to $120 and proceeded to climb above the $130 price level. While the price has declined since then, Litecoin price continues to trade around the $130.00 mark.
Technical indicators
Across the technical indicators, the MACD shows declining bearish momentum as the two EMAs appear to be converging. The bearish momentum is expected to disappear if LTC continues holding above the $130 level.
The Bolinger bands are currently in a squeeze but do not show divergence suggesting that LTC might observe further sideways movement at the current level before the price volatility increases.
The RSI reinforced this idea, but after the recent retracement, the indicator has returned to neutral and suggests an increase in volatility.
Litecoin price across the weekly frames
Across the weekly charts, LTC seems to be on a strong bull run as the price consistently trades above the upper limit of the Bollinger Bands. The Bollinger Bands are wide and show further divergence as LTC continues showing high volatility. The MACD also show increasing bullish momentum as the two EMAs diverge further.
If Litecoin closes the week above the $145 level, LTC can be expected to continue its upward movement breaking above the $150 mark by the first week of 2021. However, if Litecoin price consolidates at the current level, LTC can be expected to drop back to the $100 level.
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