- Litecoin price analysis turns neutral as yesterday’s recovery looks shaky
- The upward trend is under threat as LTC struggles near $133
- Shrinking Bollinger Bands slow down the rise of LTC/USD
- Low volumes can erode yesterday’s recovery rally with support at $125
Litecoin is displaying weakness in yesterday’s bullish uptrend. The recovery from $105.00 lows is under threat from a renewed selling spree. The pair can see another slide towards the $120 support zone. Currently, the pair is trading near the $133 level and moving south amid a gradual decline. Low volumes and contracting Bollinger Bands are not helping the pair cross key resistance levels.
The daily charts are showing multiple signals of weakness in the uptrend. The support level on the hourly charts is also giving way due to inherent selling and profit booking. According to Litecoin price analysis, the $125.00 support level will not hold if a sharp selling round ensues.
On the other hand, the bulls cannot drive the momentum upwards as the volumes are weak. The neutral to bearish stance in the crypto market is gradually causing most altcoins to erode to their nearest support level. The LTC/USD pair is unable to cross the $140 level. Additionally, the charts look confusing as the pair struggles to move past resistance on the back of weak technical indicators.
Litecoin price movement in the last 24 hours: LTC negates bullish rebound
The past 24 hours saw the price recover from $105 lows with renewed volatility. However, the volatility does not seem to last as the pair is not able to break out from the Bollinger Band. The $140 resistance level and the 200-day moving average are putting increased pressure on the market. Litecoin price analysis suggests that the bullish inside candlestick pattern is also under threat meaning there can be short-term pain on the charts.
The 200-day exponential moving average is serving as a credible source to predict short-term price movement. As the price looks ready to breach 200-day EMA, Litecoin may attract further selling. The RSI indicator stands right in the middle at 50, confusing the matters further as per Litecoin price analysis. The slope of RSI is downwards, which also strengthens the bearish outlook. The neutral territory and the trading volatility are showing that bulls won’t take long positions anytime soon.
LTC/USD 4-hour chart: Technicals look weak
The buyers need to enter the market with large volumes to push the price above the $140 resistance level. Beyond $140, the psychological resistance at $150 will inspire more sellers to push the price south. Sufficient volumes can trigger a bullish breakout and turn the descending price channel upwards.
Unless the price pierces the lower Bollinger Band at $110, there won’t be extensive panic selling in the pair. The gradual recovery to $140 will happen only when the pair has re-tested the earlier untested levels on the charts according to Litecoin price analysis.
Litecoin price analysis conclusion: Is a big move coming soon?
The shrinking Bollinger Bands does signify an upcoming change in the trend. The resulting breakout from a contracting Bollinger Band can shift the Litecoin price analysis. The Parabolic SAR indicator shows a sell signal but not to an extreme level. The downtrend in Litecoin may also not last long as the pair is well supported near $120 and $115 support levels.
Additionally, the price will also move according to the 50-day and 100-day moving averages. Traders will keep an eye on these vital lines for any untoward decline. The buying pressure will only build up when the pair is near key support levels for a sustained period. As the price struggles to remain at the current $133 level, the bulls will have to muster up the courage to move towards the $140 resistance zone.
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