TL;DR Breakdown
- Litecoin is trading close to the 20, 50 and 100-day moving average lines, the current support region.
- LTC sustained strong intra-day interest to jump above vital Displaced Moving Averages (DMAs)
- Resistance maintains at the $190 mark although recent pullback from last week’s high of $191 has given bulls another opportunity.
Litecoin price analysis suggests that the cryptocurrency is trading dangerously close to the support zone around the $170 mark established in the current scenario. After some recovery from earlier in the week where price dipped as low as $166.67 on August 26, the 15th largest cryptocurrency in the world sits at $174 at the time of writing.
Selling pressure was observed near the $200 mark, which set resistance levels around $190. The current price is up 3.2 percent in intra-day trade, while trading volume has dropped by the same percentage, presenting prospect of a slight incoming correction.
LTC followed a positive progression in the larger cryptocurrency market led by BTC‘s ascent up to near $49,000, a 7-day high. ETH went up by 4 percent at $3,243, while Altcoins also propelled. Ripple and Dogecoin increased approx. 5 percent each to sit at $1.17 and $0.28, respectively, while the biggest increments were seen in Cardano (9.4 percent) and Solana (10.4 percent).
LTC/USD 24-hour chart: Price fluctuates close to support at $170
The 24-hour chart for LTC/USD pair shows a head and shoulders pattern where LTC price sets at $166 on August 12, only to increase up to $184 within 4 days. The pair then dipped down to $167 in the next few days before going back up to a month-high of $187 to form another shoulder.
Since then, the price has moved below the simple moving average over the past 4 candlesticks with an RSI of near 54, suggesting anything can happen from here. As the pair floats above the 20, 50 and 100-day moving averages (DMAs) along with a good trading volume, a strong uptrend can be seen in the upcoming trading sessions.
LTC/USD 4-hour chart: Another bullish session required to push further
The 4-hour chart for the LTC/USD pair shows a classic battle between buyers and sellers as price hovers around support levels. After a minor pullback, the bearish trend can be seen to continue over the past few trading sessions.
Over the past few 4-hour candlesticks, the price can be seen in touching distance of the middle Bollinger band curve, which is the Simple Moving Average (SMA) suggesting an oversold pattern.
If the trend continues, a positive recovery can be seen within the upcoming trading sessions as per Litecoin price analysis. The RSI has relatively flattened over the last few sessions, going close to the 40-mark where buying activity may be initiated.
Litecoin Price Analysis: Conclusion
The LTC/USD pair continues to trade near the current support level set at $170, which presents a defining period for the cryptocurrency.
If price can maintain above the current support levels and trading volume increases, an oversold state may be reached, after which buyers will come into the market and push the price further. In opposition, if price fails to maintain over the next trading sessions, the downturn maybe extended to lower support levels at $150.
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