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After reaching the resistance threshold of $296.74, Litecoin’s price retraced by nearly 38% on the markets. Unfortunately, even though a later rebound drove the price of digital silver up to $265 at the time of publication, industry traction was already lacking.
Litecoin daily chart
The daily chart of Litecoin suggested that the cryptocurrency’s price had broken out of its ascending channel and was once again recovering. However, the aforementioned decline has made the market more vigilant, and a concerted attempt was being made to maintain the press time price.
As the price fell, bearish volatility took control of the economy. However, when the altcoin’s price stabilised, so did its uncertainty. As the market moved sideways, the Signal line remained indecisive about the price trend as buyers and sellers stayed involved.
The Relative Strength Index was climbing into the overbought level, highlighting the market’s uncertainty, as capital was rapidly exiting the market. At press time, the RSI value was 57, which did not confirm a bullish pattern but did highlight increasing purchasing pressure. Meanwhile, the Chaikin Money Flow indicated that traders had realised their profits, as liquidity was now exiting the market.
As the short-term market stabilises, Litecoin can maintain its low movement between $244 and $271 in the long run. If the RSI indicates that buying pressure is increasing, the price can retest the resistance at $296.
The new Litecoin [LTC] industry is seeing consolidation. With April being a volatile month, the price may shift right above the $244 level in the coming week. However, with the Bitcoin and Ethereum markets seeing spikes in gains and losses, the altcoin market could also take a sharp turn.