The Litecoin Consolidation Phase is still ongoing and the asset is moving between the $42 and $45 price range for two weeks now as the altcoin is recording sideways price action. In today’s Litecoin price news, the movement noted several rejections and the look at the charts would suggest that the bears are remaining here.
The descending triangle pattern was taking shape on the LTC daily charts and the completion of the pattern could lead to a bearish breakout in the long-term which was also supported by the placement of the daily moving averages. The 50 DMA noted in the minor upswing, which appears to be decreasing the gap with the 200 DMA so the bullish phase for the coin is still here because of that. The prospect of a golden cross diminished as both moving averages were going parallel to each other which means that the bearish phase could be going ahead.
In addition, the 200 DMA hovered above the LTC price candles but the 50 DMA also climbed above the candlesticks on May 13 as it continued resisting the upward movement. This further validated the presence of the bears as well. Looking at the technical indicators into consideration, it was found that they were entering e bearish phase as the MACD indicator slid below the signal line and depicted the bears taking control. The RSI was also below the 50-median natural line which pointed to a sentiment of selling pressure among the investors on the market.
The descending channel pattern took shape over a period of three weeks and the placement of the daily moving averages and indicators pointed out to a bearish breakout. If this happens, the coin could find itself retesting the target point of $35 where it saw a registered high trading activity according to the VPVR indicator. If this trend continues, it could find itself retracing to the December 18 lows at $22. The Litecoin Consolidation phase took a long time and the reversal trend for now looks kind of bleak as LTC price resisted at points of $51 and $59.
While litecoin is considered the silver to Bitcoin’s gold, this holds true as the two coins are not only sharing the same codebase but have similar price actions and are rising and falling at the same time. the BTC/LTC correlation stood at 0.86 at the time of writing. This only showed the fact that the Bitcoin upward movement would be able to boost Litecoin’s price to breach the major resistance points.
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