Litecoin (CRYPTO: LTC) has been cooling off the past week or so after making a large run pushing to over $300. The crypto is pushing higher alongside the rest of the cryptocurrency market Tuesday. Litecoin now looks to be bouncing back up off its previous resistance level.
Litecoin was up 3.21% at $215.02 Tuesday afternoon at publication.
Litecoin Daily Chart Analysis
- Litecoin recently saw a breakout above resistance in what technical traders call an ascending triangle pattern and now looks to be holding the previous resistance level as support.
- The $200 level held as resistance for a time before the break, but now looks to be holding as an area of support. If this area holds as support the crypto may start trending higher again soon. If unable to hold the higher low trendline may be the next area of support.
- The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing bullish sentiment.
- Each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) looks to be consolidating near the middle and now sits at 48 on the indicator. This shows there is slightly more selling pressure in the market, although the buying and selling looks to be relatively equal sitting near the middle line.
What’s Next For Litecoin?
Bullish traders are hoping the crypto makes a bounce at the $200 level and doesn’t fade lower below the level. Holding above the $200 level is key for bulls to continue to see more bullish movement in the crypto. Bulls are looking for higher lows to begin forming.
Bearish traders are hoping the $200 level will not be able to hold as support and for the crypto to continue to fade lower. Bears would like to see the price fall to the higher low trendline, and then be able to fall below it. This could hint a long-term trend change is coming and possibly the beginning of a longer-term bearish trend.
Photo: Michael Fortsch via Unsplash
Join ZINGERNATION and earn ZING, an ERC-20 smart contract token we launched aimed to reward members as we build a community to find and share great trading and investing opportunities. Download the mobile app now, available on iOS and Android.