Leading altcoins like Litecoin (LTC) have been collectively retracing for the past week or so, after breaking out from their lows early in September. But in the past few hours, Litecoin has bounced hard, perhaps signaling that it’s done with downside for now -- although this is not yet confirmed.
Looking at the detailed 4-hour LTC/BTC chart, we see that price has held rather nicely within a support zone from August, only losing the 55 exponential moving average (EMA) briefly before retaking it and the 21 EMA. If the 21 can be held now, LTC should be in good shape.
Some volume has come in for the price bump, although not very much. What’s more, the histogram on this important chart is already looking to arc back down. This may signal a short stay on the positive side for Litecoin, making this bump an interim wave on the way down.
Moving to the daily chart, we see a mixed picture. The daily candle is looking good so far, and looks like it could easily put in a bullish engulfing candle over yesterday’s candle. However, not a lot of buy volume has appeared to support the rally, although today’s volume should outstrip yesterday’s even if only slightly.
The histogram here looks pretty neutral, trending down after the latest price peak. The RSI is also neutral and confluent with price action, giving no “hints” as to market support.
Finally, on the 12-hour USD pairing, we see that the August 2019 support level of $72 is being tested at time of writing. Obviously, Litecoin’s price has a lot to do with what Bitcoin is doing, and as we covered today, Bitcoin is winding down a long period of consolidation and may soon become much more volatile.
A clear resistance has formed at about $73.19, and if a 12-hour bar can close above this level, it may be a signal that LTC will take more ground up. The histogram looks to be arcing up on all its closed candles; and although the current bar looks nasty, we still have nine hours of trading left on this period.
Ultimately, there are no strong indications that this Litecoin bump is anything more than a blip on the way down, although it certainly could be. The picture here is pretty neutral, and buyers are not flooding into the LTC market.
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