Litecoin has broken the current bearish downtrend pattern after a month-long pull-back saw price levels drop around 50%. The question remains as to whether LTC and other altcoins will begin to rally higher or continue to create lower lows over the coming weeks.
Litecoin Price Analysis Daily Chart
On the Daily LTC/BTC chart we can see the most recent breakout ending the downtrend stemmed from the highs in early June at around 0.018 sats. Litecoin volume has been trading very high throughout during the recent pull-back which formed a falling wedge, in comparison to the price action throughout March and April which saw market price trading much higher than what we see currently.
The MACD has begun arcing back up towards the signal line with fresh buying volume appearing on the histogram. POC (Point of Control) is still surprisingly high, currently sitting around 50% higher than the current market price. This is a good indication that a swift move to the upside could play out over the coming days. This, of course, will largely dependant on whether Bitcoin begins to consolidate or carries on dropping further over the rest of the week.
Key resistance levels to look out for if price levels begin rising back up towards POC are 0.0099, 0.0160, and 0.0128 sats.
Litecoin Price Analysis Hourly Chart
On the hourly LTC/BTC chart, we can see the most recent breakout around 0.083 sats much more clearly, which resulted in a swift 15% move to the upside. Buying momentum has shifted to the upside evident from the green bars on the Maxx Momentum indicator. 50MA is currently touching POC (Point of Control) at 0.088 sats making this a likely area for price levels to pull-back to short-term.
Analysis of the LTC/USD pair can be found here. Altcoins across the market has seen some much-needed upwards movement throughout the last 48 Hours after continually creating lower lows.
In my previous BTC analysis, I touched on the importance of monitoring the correlation between top volume altcoins and BTC’s price action. This can be very useful when trying to gauge the flow of the market and whether it’s actually worth trading altcoins, typically when BTC is moving quickly in any given direction altcoins struggle to hold their value as they can’t compete with BTC’s volatility, adversely when BTC is consolidating and moving sideways altcoins typically flourish.
Do you think LTC will continue to grow over the coming weeks? Let us know your thoughts in the comments below!
Images via Tradingview, Shutterstock
