For the last few days, the cryptocurrency industry has been playing chase with the bulls and bears. The economy has been swinging between the immediate highs and lows, as seen in the Litecoin altcoin market.
At the time of publication, LTC was on an upward trajectory, having risen 16 percent in two days from $187.71 to $218. However, a retracement was evident, resulting in LTC trading at $210.40.
Litecoin 4-hour chart
The above chart showed that the price of LTC had been gradually declining until recently, giving the bears the upper hand. However, as market sentiment changed, the price began to retrace, followed by a sudden rally that also substituted the bears with the bulls.
The current price was constructed within an ascending channel; however, the trend’s breakout could be lower on the price scale.
The market’s uncertainty has risen, as demonstrated by the separation of the Bollinger Bands. The increasing uncertainty may be a double-edged sword for the LTC value, as selling pressure was also on the rise. The price of LTC could be pushed towards the support level of $200 if the pattern breaks.
Although the relative strength index has shown that the digital asset has advanced from equilibrium to overbought territory. Nonetheless, the selling pressure noticeable at the time of publication has driven LTC below the overbought zone. This may be an effort to stabilise the asset’s worth. Meanwhile, sentiment has remained incredibly bullish and has yet to shift to the bearish side.
Important levels to watch out for
Take Profit: $200.91
Risk and Reward: 1.36
The new LTC market has been signalling an overly optimistic market, which might shift to bears if selling pressure rises. The ascending channel pattern is pending breakup, and given the market’s intense bullishness, a reversal might bring the price down to the $200 support range.
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