Litecoin Market Analysis for 24th January 2021

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Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice

Litecoin traded within the range since late December and reached the mid-point of the range. Technical metrics have indicated that the momentum for the LTC has not fully reversed, which means that the market response at the $149 stage would be of paramount importance.

Litecoin 12-hour chart

The range between $123 and $180 was divided using Gann’s law of eighths to give the degree of significance within the range, with the 50 percent level at $149 being the most important. Over the next few days, rejection at this stage will see LTC revisit $135, and likely sink as low as $123. Climbing above the 50 percent mark, as it did a few days ago, would see Litecoin touch the $163 resistance level.

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The RSI was at a neutral 50, indicating a lack of movement in either direction. Over the past week, the OBV was very flat, denoting the balance between buying and selling volumes. This needs to shift to make a good attempt for LTC to materialize.

The amount of trade of the coin was also poor. A shift towards an above-average level of trade can demonstrate market conviction which can be used to move in the direction of the move.

The Amazing Oscillator was unable to pass across the zero axes, even though it developed a bullish twin peak formation on the 18th of January, followed by an LTC rise of nearly 15 percent from $140 to $163. A similar bullish twin peak set up would send a signal to purchase.

Conclusion

At the time of publication, Litecoin did not purchase or sell signals. However, such considerations, such as the trading volume or the price response of $149, can give the trader a signal to enter the market in the right direction. The 25 percent and 75 percent thresholds are take-profit levels, and the range lows and peaks can also be tested on the basis of the LTC momentum.

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