Litecoin price analysis reveals that the LTC price has met significant resistance at one hundred dollars ($100) that is reinforced by its hundred days moving average.
Litecoin’s price action has tried and failed multiple times to overcome this resistance. This has also led to the recent price drop of two percent (2%) across the day’s session. Regardless, Litecoin had an excellent week with an overall rise of six and a quarter percent (6.25%).
As Litecoin’s block reward halving event nears buyers’ momentum continues to increase. During this event, Litecoin’s block mining reward will decrease from twenty-five (25) to twelve and a half (12.5) Litecoins per block. This also means that the influx of Litecoins into the system will also reduce along with its inflation.
Although mining events increase the cryptos price significantly due to buyers’ rush, Litecoin’s block halving has already been priced through May-June and therefore such a spike is unlikely.
Across the daily frames, we can observe that Litecoin managed to overcome the resistance at a little over ninety-seven dollars ($97.18) mark but could not rise above the hundred dollars ($100) resistance. This resistance zone is reinforced by the hundred-day estimated moving average (EMA). Currently, litecoin is consolidating inside a symmetrical triangle.
Price action has two key resistances the first at the top of the triangle and the next at 100 dollars. Further above support lies at one hundred and ten, one hundred and nineteen and one hundred and twenty-five dollars ($110, $119 and $125) marks. Higher above next resistances lie at one hundred and thirty-six and one hundred and forty dollars ($136 and $140) marks.
On the other hand, if the price action breaks out below the support provided by the triangle next support lies at ninety dollars ($90). Below that support lies at eighty-eight dollars ($88) that is reinforced by the two hundred days EMA. Further below support lies at a little below eighty-five dollars ($84.77) and then at almost seventy-seven and a half dollars ($77.45) marks.
The trading volume has remained consistently low that is surprising with the halving approaching. Although Relative Strength Index (RSI) is above the 50 levels it is falling back towards it as the market is indecisive. The stochastic RSI remains bearish with trades in the overbought territory.