Having formed an inverted head and shoulders on the daily chart, Litecoin recorded a surge in the cryptocurrency market yesterday.
Litecoin initially increased by more than 10% while other important cryptocurrencies did not follow the example.
The other major cryptocurrencies followed the day with Litecoin, which acted effectively as the leader for price action it has done repeatedly in the past.
Since then the wave has stopped and today Litecoin is trading between $ 37.50 and $ 39.50.
If the price can continue to rise, $ 41.50 to $ 44 is a key liquidity area to monitor.
The price was consolidated around this point during the fall of November, followed by further bearish movements.
On the other side of the coin, the neckline of the reverse head and shoulder pattern that is around $ 34.60 can come into play as a support.
The hourly chart indicates that the shorter-term momentum is currently more downward-oriented.
The lower peaks were formed by the surge, as indicated by the black arrows.
The hourly MACD and the RSI – both momentum indicators – are also declining, showing an increasing dynamics of the seller.
The bullish argument would be that the price is undergoing a consolidation here before recording another bullish wave.
- Litecoin leads bullish movements through the market yesterday after a 10% hike.
- Since then the upward movements have stopped at Litecoin. The expected resistance is above $ 41.50.
- The lower peaks that are formed on an hourly basis and the increase in the moment of the seller indicate a greater probability of short-term downward movements.
- It is also possible that the price is currently undergoing consolidation before registering another increase.
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