Litecoin is trading on a flat-to-negative basis at $3.042 after amassing hefty gains in the previous sessions. The cryptocurrency has hit a roadblock near the earlier lows and is facing resistance from them.
Taking a look at the daily LTC-USD price chart below, it can be said that if Litecoin fails to head above this resistance soon, then it runs the risk of being trapped in another range.
Litecoin Chart Structure – Upon a closer look at the above chart, market participants will find that the previous lows marked as 1 and 2 are limiting the gains for Litecoin now. The Support for Litecoin is the twice-tested level of $2.500.
If either the bulls or the bears fail to snatch away the game from the other, then another consolidation may follow.
Moving Average Convergence Divergence – The Histogram has gained another day to touch 0.0911. While MACD has advanced to -0.1879, the Signal Line is at -0.2790.
Money Flow Index – The Money Flow Index has taken a hit following the stalling and is now at 54.0252.
Relative Strength Index – The RSI is crawling upwards and has managed to hit only 45.6553. What’s intriguing to me is that even though the price is up roughly 20 percent from its recent lows, the RSI continues to reflect that bears still have a better hold on this game.
The latest Litecoin picture is very mixed: either of the parties i.e. the buyers or the sellers must make an attempt sooner if they are to avoid the consolidation phase.
Market participants should keep an eye on the Bitcoin market which is due to face many resistances on its upward march. Since Bitcoin is expected to face pressure, I am expecting the same for Litecoin.
Volatility may not spike in the coming sessions as well.