Litecoin trades below the market capitalization of Bitcoin Cash and currently has a market capitalization of $ 11 billion. After the crash in May 2021, LTC appears to have lost its charm. Trading in a consolidation zone has made it difficult for new investors to trade at this counter.
Litecoin’s upward move is threatened by its long-term moving average of 200 days. It can be seen that despite trying to be a few inches higher, LTC posted a profit posting of nearly 200 DMA.
Litecoin price fell from highs of $ 400 to lows of nearly $ 100, causing immense volatility in value. With the RSI still in the neutral to bearish territory, the future for LTC looks bleak.
Litecoin Technical Analysis
Using historical moving averages, trend lines, relative strength index, volume, and resistance and support zones, we can easily identify future price momentum in LT / USD. Aside from the lower volumes, consolidation in a narrow zone has become an enemy of any positive dynamic.
Area trading for the past ten days has been a major blow to investor sentiment. Until it crosses one of the lines, little can be expected from LTC in the short term. The RSI also shows a neutral zone around 40 on the histogram, indicating its trading in oversold zones. Still, there hasn’t been a lot of price promotions since May 21, 2021.
The only hope is to break through the consolidation zone with decisive force. Until such an event occurs, it is wiser to sit outside of this cryptocurrency.
Strong resistance: $ 195
Immediate resistance: $ 180 to $ 195
Immediate support: $ 160
Strong support: $ 145 to $ 160
100 day moving average: $ 230
200 day moving average: $ 187
The first immediate resistance will close above the 200-day moving average on the daily charts. We can see a deviation from near the 200 DMA curve indicating a lack of strength in Litecoin. Even in the RSI histogram, the value of 40 repeats the same sentiment on the hourly charts mentioned above.
On the hourly charts, there appears to be some new buying at lower levels of $ 155 while the next supports can be seen at around $ 173. According to our Litecoin prediction, LTC appears to be testing the strength of current price action support. The increase in hourly trading volumes indicates the low level of positive momentum.
Traders should be cautious about entering new positions at these levels as LTC has been trading in a tight consolidation zone and the price is currently closer to the upper end of the consolidation zones. There is a good chance LTC will give a false breakout to sell at a higher value.