NewsletterLTC Price Analysis: Hidden RSI Divergence Foretells Recovery For Litecoin Holders
The LTC/USDT technical chart indicates an overall bearish trend. The coin price has recently plunged to the July 2021 low of $105, indicating a 64% loss from the previous swing high of $297. However, a rising daily RSI slope bolsters the bulls to initiate a recovery rally above $120 resistance.
Key technical points:
- The daily-RSI signals an uptick in bullish momentum.
- The intraday trading volume in the LTC is $775.7 Million, indicating a 4.33% gain.
The LTC Chart Shows An Inverted Flag Pattern
Source- Tradingview
Contrary to the above assumption, the $4-hour time frame chart threatens the continuation of the downrally by forming an inverted flag pattern. This bearish continuation pattern provides an excellent short-selling opportunity when the coin price breakdown from the rising support trendline.
In conclusion, crypto traders should observe whether bulls reclaim $120 resistance first or if sellers complete their price pattern to take trade accordingly.
During the early third week of January, the cryptocurrency market suffered additional downside volatility, which tumbled the LTC price to the yearly support of $104. However, several lower price rejection candles show sellers faltering near the bottom support.
Source- Tradingview
The buyers might take this chance to pump the coin price to a higher level; however, the immediate resistance of $120 exerts intense selling pressure on the bulls. Since last week, the coin price has been wavering between the said levels, creating a narrow no-trading zone.
However, the LTC price trading below the trend defining 100 and 200 MA states a bearish outlook. Moreover, the coin shows the 20 and 50 MA line acts as a dynamic resistance during the bullish pullback.
Despite a sideways consolidation in price action, the Relative Strength Index(38) slope rallies higher, reclaiming the 14-SMA. The growing strength among buyers indicates a better possibility for an upside breakout.
- Resistance levels- $120 and $142
- Support levels- $104 and $90
- MetaSpace releases the official trailer for its interstellar-themed Game
- Robinhood Expands Prediction Market Reach With Launch of New Derivatives Platform
- Experts Turn Bullish on Zcash as Reliance Global Dumps BTC, ETH, ADA for ZEC
- NYSE Arca Clears Bitwise Dogecoin ETF for Trading Today After Grayscale’s Slow Start
- Franklin Templeton Submits Final SEC Filing for Solana ETF Following XRP ETF Success
- Pi Coin Price Surges Above $0.25 Ahead of Major November 28 Announcement
- Solana Price Prediction as ETF Inflows Hit $621M After 21 Days
- Monad Price Prediction Amid Mainnet Debut — Is a Bigger Breakout Ahead?
- Chainlink Price Could Soar to $15 as ETF Listing Nears
- Will Cardano Price Rebound as Hoskinson Hints at a TVL Surge After Midnight Launch?
- Ethereum Price Holds $2,900 Amid Massive ETF Inflows and BlackRock Purchase
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
