Litecoin carried the flag of extreme volatility over the past 30 days after witnessing a couple of major price swings. The collective market decline on 24 September pulled the coin down by over 29 percent, equivalent to around $20. On 25 October however, Bitcoin’s massive rally had assisted the rest of the altcoin market, including Litecoin, with the silver coin managing to climb up to $64. At press time, corrections had pulled back its valuation to $58.03, but further bullish signs were observed on the charts.
The 6-hour chart clearly identified some major price movements and indicated a depreciating price, at press time. However, LTC’s movement over the past few days exhibited the formation of a bullish pennant. Litecoin’s valuation had adhered within the pennant’s trend lines and the possibility of a bullish breakout was high. The immediate resistance was placed at $63.97; however, without significant momentum, it would be difficult to breach it, despite a surge.
The decreasing trade volume of Litecoin confirmed the observed bullish pennant. The trade volume should spike up as the coin breaks out.
The 1-day chart for Litecoin recorded the appearance of a flag, one that followed the same possibility of a bullish breakout. The decreasing volume suggested that traders were holding their position in the market and an increase in trade volume should surface during the bullish breakout.
The MACD indicator also suggested that the trend was bullish for Litecoin in the long-term, a trend which improved on the possibility of a bullish break.
The immediate resistance for Litecoin remained at $63.42, similar to the 6-hour chart, followed by more resistances at $71.56 and $77.85. However, even though the trend was bullish, the 100-Moving Average still maintained an upper-hand over the 50-Moving Average, something which suggested that bearish signs were not completely out of the picture. A bullish breakout may see a quick correction based on the Moving Averages, as Litecoin continued to record volatile price movement.
Litecoin’s ailing price prepares for breach of descending channel
Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.
Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.
The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.
The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.
The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.
Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.