Litecoin (LTC), could take the bearish path. According to CoinMarketCapLTC is currently trading at $56.50, or 0.52% down from its previous high of $56.50.
- Litecoin moves to bearish
- LTC trading at $56.50, down 0.52%
- LTC candlestick is engulfed by LTC shows higher selling pressure
LTC has been hovering near its midpoint for the last few days. Litecoin has fallen 12.75 percent from its 5-day peak, but it is up by 7.26% compared with its 52.56 low.
LTC is trading above its key resistance level. Now, support can be seen at $54.17 while resistance is at $56.13. LTC may experience severe volatility if the rally in price drops.
Litecoin Trading in Low Volumes
It can be observed that Litecoin has been trading at ridiculously low volumes lately which means that today’s trading volume is comparably low to the coin’s average trading volume in the past week.
Many LTC buyers are now more confident due to the market’s improvement. There could still be a chance for bullish momentum.
The 62-64 range may be preventing a bullish move. LTC appears to be falling below the EMA ribbons which indicate a strong bullish or selling streak.
Even more, the formation of an Engulfing Candlestick Pattern has shown a significant uptick in sales activity.
The strong knock-back from higher prices near the 20 EMA could prompt a near-term disengagement, before any revival opportunities come to light.
LTC RSI Shows Intense Seller Pressure
The altcoin’s recent buying boom has pushed it to higher levels over the last month. Litecoin sees an ascending channel structure in the specified timeframe, even though the bears confirm the $64 ceiling.
LTC saw a bearish compression phase close to the EMA skins. LTC still has key support near the $53.7 zone as of press time.
So, even though the EMA ribbons aren’t looking so positive, the bears aim to shift the near-term trend. Selling pressure would be strengthened if the ribbons were given a bearish punch.
The $53 level is a rebound that could help buyers trigger a sluggish move close to the EMAs. A close to this support line can lead to altcoin experiencing a long-term setback.
LTC will likely move towards the $50 zone when it happens. The bulls may then go in for intense buying pressure.
RSI for Litecoin demonstrates a strong selling trump. The sellers can only benefit from a long pullback. OBV with lower troughs revealed a minor bullish divergence.
Potential buyers could see an increase in support zones that can help to end the short-term bleeding. Nevertheless, LTC’s ADX is still having a hard time improving its delicate position.
Source: TradingView.com| Source: TradingView.com Featured Image from Analytics Insight. Chart from TradingView.com