In the previous Litecoin price technical analysis Flat Action, we discussed that if Litecoin fails to cross the resistance posed by the level of $3.160, it runs the risk of entering into a range. As can be seen, Litecoin has plummeted 4.44 percent to $2.907 as traders resorted to profit taking near the resistance.
Another factor weighing on Litecoin is the weakness in the Bitcoin market. However, the good news is that Bitcoin is now close to its support level of $235.
Values from the technical indicators overlaid on the daily LTC-USD price chart also suggest that there is an increased probability of the cryptocurrency entering into consolidation phase as both the bulls and the bears fail to get their act together.
Litecoin Chart Structure – We discussed in the previous Litecoin analysis about a possible price range of $2.500-3.160. Since this is a big range, Litecoin may trade sideways within these limits before breaking out.
Litecoin now receives cushion from the 9-day simple moving average of $2.8606.
Moving Average Convergence Divergence – The Histogram takes a cut in the