After being one of the most explosive – and early – performers of the 2019 cryptoasset markets, Litecoin (LTC) has recently taken a back seat to Bitcoin’s (BTC) dramatic run which topped (for now?) at over $13,000 yesterday.
That is putting it lightly. Litecoin has been smashed in the last couple of weeks, and now totters – like most altcoins – on a critical LTC/BTC support level.
Looking at the daily chart and RSI, we see that Litecoin is currently holding onto a significant historical support. Below the current support lies the block of historic lows on the leading altcoin, with only 30% worth of price drop remaining.
Given just how oversold the leading altcoin is on the daily RSI (pictured), it is completely reasonable to expect a bounce here. But most other leading altcoins are in a similar predicament – at the bottom of their BTC pairings – and are waiting to see if Bitcoin will retrace and how far. Further Bitcoin shenanigans could kick Litecoin over a cliff edge.
Glancing at the hourly LTC/BTC chart above, we can at least take note of an uptrending RSI strength out of oversold conditions on lower prices – a bullish divergence. Volume, however, is still weak
Looking at the daily hour LTC/USD chart, we see another obvious, but perhaps dangerous trade setup. Litecoin has been uptrending fairly neatly in a channel for some time, but Bitcoin’s correction from the top has sent LTC careening down toward the bottom of this channel and into support.
At time of writing, it is too early to tell whether or not this level will hold, with the key price being about $120. Even with a falling Bitcoin, the LTC/BTC pair could and probably should be easily bought up to save the USD price.
Looking at the hourly chart, we see that a positive candle has closed just under $120, on weak volume. A nasty RSI picture does not give us on bullish divergences to grasp on to, and we can’t consider any confirmation of support yet.
On both LTC/BTC and LTC/USD pairings, then, Litecoin is at the bottom of a pattern. And in both cases, support showing up for the leading altcoin would present good trading or dip-buying opportunities. But that support is nowhere yet confirmed.
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