How Soon Will Litecoin Breach This Psychological Resistance Level?
April 28 2023 - 7:52AM
NEWSBTC
In recent trading sessions, the price of Litecoin has remained
stagnant below a significant resistance level while Bitcoin has
experienced consistent fluctuations. Although Litecoin showed a
slight increase of 2% in the last 24 hours, it lost 1% over the
week, indicating consolidation. The altcoin’s technical outlook
suggests a potential bearish takeover, as demand and accumulation
for the altcoin have both declined. The crucial overhead resistance
level of Litecoin has been a barrier that the coin has failed to
surpass previously. In the event of another rejection over the
coming trading sessions, bears could successfully take over.
Related Reading: Terra Classic Recent Efforts Could Benefit LUNC’s
Growth Potential As Bitcoin approaches the $30,000 mark, major
altcoins are following a similar price trend. If BTC successfully
crosses this resistance level, Litecoin could experience a rally.
However, the market capitalization of LTC has decreased in the last
24 hours, indicating a decline in buying strength. Litecoin Price
Analysis: One-Day Chart At the time of writing, LTC was trading at
$89.58, and the overhead resistance level was at $90, which the
coin has attempted to break through over the past few weeks. If LTC
manages to surpass this level, it could potentially trade near the
$100 mark. However, for a recovery on the chart to occur, selling
pressure needs to decrease. On the flip side, if LTC falls from the
$89 mark, it could reach $88. Failing to stay above that level
could drag the price down to $84. The last trading session showed a
red volume of LTC traded, indicating that sellers were dominating
the market. Technical Analysis Following the formation of a tall
bearish engulfing candlestick, the price of LTC has been steadily
decreasing, and demand has also diminished. The Relative Strength
Index (RSI) remains below the 50-mark, indicating that there is
more selling pressure than buying strength. Additionally, LTC has
fallen below the 20-Simple Moving Average line, indicating that
sellers are driving the price momentum. However, the price has
moved above the 50-SMA line (yellow), suggesting that LTC might
attempt to recover over the next trading session. In line with
other indicators, LTC has shown sell signals associated with
negative price action. The Moving Average Convergence Divergence
(MACD), which indicates price momentum and reversals, has continued
to form red histograms, signaling sellers to the table. Related
Reading: Why Coinbase CEO Believes SEC’s Crypto Warning Is Harmful
To The US The Directional Movement Index has also been negative,
with the +DI line (blue) below the -DI line (orange). Furthermore,
the Average Directional Index has fallen below the 20-mark,
indicating that the current price trend lacks strength. However,
with an increase in demand and broader market strength, LTC may be
able to break through its overhead resistance level in the coming
trading sessions. Featured Image From UnSplash, Charts From
TradingView.com
Litecoin (COIN:LTCUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Litecoin (COIN:LTCUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024