Litecoin Price Movement Analysis for 12th March, 2021

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The altcoin demand has been growing over the last few days due to the Bitcoin rally. With a market capitalisation of $13.92 billion, Litecoin [LTC] also traded at a high price of $208. The price of the digital commodity experienced a jump of 4.69 percent overnight, driving its valuation up by $10.

At the time of writing, the selling pressure was increasing, and the coin could be looking at an incoming decline.

 

Litecoin one-hour chart

Source: LTCUSD on TradingView

The above map of Litcoin [LTC] illustrated how the value of the digital asset dropped as low as $190 on Thursday, after which it bounced back. It reached varying degrees of resistance and was currently at a high value. However, as a result of the unexpected boom, the market has become erratic and paved the way for a correction.

Reasoning

The Bollinger Bands have diverged, and a wide distance has been noticed. This difference was an indicator of the high uncertainty of the Litecoin market, rendering the market more vulnerable to sales pressure. Meanwhile, the signal line and the 50 moving average remained slightly below the candlesticks, highlighting a clear uptrend in volume.

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Whereas the Relative Strength Index, which was heading towards the over-purchased zone, met with resistance as the price reached $211. As the price stayed below this amount, the RSI started to see more buyers joining the market. Even if the signal remained close to the over-purchased region, the uncertainty could lower the valuation of the LTC in the short term.

 

Crucial levels

Entry-level: $208.15
Take profit: $202.45
Stop-level: $211.28
Risk to Reward: 1.82

Conclusion

The above chart of Litecoin observed that the price of the digital asset had risen to a resistance of $211 and had been consolidated below that amount. LTC could undergo a minor reversal in the short term, as the sellers stayed successful at the current price and continued to sell the digital asset.

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