Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
Litecoin [LTC] has not seen a considerable amount of volatility in current weeks, relative to the remainder of the altcoin market. The previous month noticed LTC vary between $52 and $64, a modest 22% value distinction measured from the underside.
Within the meantime, Bitcoin [BTC] slipped under the $20.8k help after a agency rejection at $24k in mid-August. The USDT Dominance metric has additionally risen prior to now month to point traders shifting to holding Tether and fleeing the crypto market.
Concern may additional rise within the weeks to come back, and Litecoin merchants could be positioned to capitalize on the ensuing value motion.
LTC- 1-Day Chart
Supply: LTC/USDT on TradingView
The Quantity Profile Seen Vary confirmed the Level of Management (crimson) to lie at $55.07. The Worth Space Low and Excessive lay at $42.68 and $69.3 respectively. The quantity device highlighted that a big portion of the buying and selling exercise since June has been throughout the extremes marked on the chart.
Since June, the worth has fashioned a spread between $65 and $43.4, values which can be fairly near the VAH and VAL. At press time, LTC exchanged palms at $61.26 per coin and there was some momentum upward based mostly on the previous few days of buying and selling.
It was probably that the $65-$69 area would firmly oppose bullish intentions, and a check of this zone may supply alternatives to promote or quick Litecoin. A stop-loss above $70 could be thought-about, with a take-profit at $55.1 (PoC) and $42.6 (VAL).
Rationale
Supply: LTC/USDT on TradingView
The Relative Power Index (RSI) has been caught throughout the 60 and 40 and has been since July. This was indicative of the formation of a spread for an asset. On the time of writing, the RSI approached 60 and will face rejection within the 60-65 band. The Stochastic RSI approached the overbought territory as nicely.
The Directional Motion Index (DMI) additionally supported the concept of a spread formation. The Common Directional Motion Index (ADX) was unable to climb above the 20 mark and keep there in current months. This indicated the shortage of a robust development behind Litecoin. The Chaikin Cash Move (CMF) has additionally stayed within the impartial space round 0, or beneath the -0.05 mark.
Conclusion
Taken collectively, the indications confirmed a scarcity of sturdy development behind Litecoin and likewise some promoting strain in current weeks. It didn’t but seem probably that LTC would be capable to break above the $69 resistance. Bitcoin was at a deadly spot for bulls as nicely. Therefore, a pointy downward transfer for LTC cannot be dominated out within the coming weeks.