Litecoin (LTC) price chart shows that the buyers defended the $70.00 level on December 11, preventing further downward movement. The broader cryptocurrency market turned bullish at that point as the price of Bitcoin rapidly rose from the $18,000 mark. The price action of Bitcoin had a significant impact on the price of altcoins, causing a bullish crypto rally.
Following the bullish turnover, Litecoin price action has made a smooth recovery as the price rose above the $80.00 mark where it currently hovers.
Litecoin daily charts show a significantly bullish market from November 1 until November 23. During this period the price rose from the $55.00 mark to above $90.00. However, the buyers could not maintain a foothold at the level, and the price saw a brief but sharp correction causing the price to fall below the $70.00 mark.
The buyers defended the support level, and the price made a V-shaped recovery before declining once again. The price returned to the $70 support level before the bearish momentum subsided. The buyers once again defended the level, and the price currently seems to be recovering towards the $90.00 level.
However, unlike the previous two times, the price action is currently facing resistance at the $80.00 mark due to the uncertainties in the broader cryptocurrency markets. While most assets saw sharp bullish activity over the last two days, the price action as remained stagnated for today, with the bullish momentum being exhausted.
The MACD indicator suggests a bullish reversal as the two EMAs begin to converge. The Bollinger bands appear to be contracting, suggesting reduced-price volatility in the coming few days. Meanwhile, the RSI remains neutral and hovers close to the 50.00 level.
While the market momentum is bullish, the trade volume remains relatively low. This shows that many investors are sitting on the sideline speculating at the markets. Traders should expect Litecoin price to move in a bullish pattern with a low trend angle for the next few days and unless the trade volume rises significantly, it would be difficult to observe the price touching $90.00 mark.
As we observed in the daily frames, the price action is facing resistance above the $81.00 level with the $80.00 acting as key support. Since recovering from the lows of $70.00, the price has failed to move above $82.00.
However, unlike the daily charts, the Bollinger Bands on the 4-hour frames are in a squeeze and suggest high volatility in the coming future. Similarly, the MACD has completed a bullish crossover and indicates bullish dominance in the markets. Meanwhile, the RSI is around the 60.00 level showing bullish momentum but suggests that the price has room for sharp upwards movement,
Traders should expect Litecoin price to consolidate above the $80.00 level before the price action moves for a bullish breakout. Currently, the nearest resistance lies at $83.00 with the support level at $80.00. Further above resistance can be found at $86.00 while the next support level lies at $76.00.
This post was last modified on January 8, 2021 1:26 am
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