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Litecoin, like Bitcoin, hasn’t experienced a wave of note in the past week. In fact, the opposite happened, with Litecoin’s weekly price change observed to be negative by 7.15%. While not surprising, the same pattern can be seen for the top 15 altcoins [by market cap].
The highest drop can be seen in Cardano, with the alt seeing a 14% drop while Chainlink has seen a 13% drop in the past week. This article will look at the ambiguous nature of Litecoin’s price.
Litecoin 1 week chart
Source: LTCUSD on TradingView
The one-week chart for Litecoin can be broken down into 3 parts: patterns, important levels and bias.
Right now, we are seeing Litecoin consolidate into a symmetrical triangle. Litecoin has formed lower highs since 2017 and the same is true now too. It also formed high lows from the same period. So, this multi-year consolidation, whenever it occurs, will be a sight to behold and hopefully bullish.
The important levels are as shown in the graph. However, at the time of writing, LTC was well above the $ 50 level after failing to hit $ 64. If LTC continues to drop, we could see the $ 50 cryptocurrency test before the breakout.
Also, the red line displayed on the graph has supported weekly wicks for the past 3 weeks. Hence, this will prevent the price from dropping further down on the charts.
Moving on to bias, at the time of writing, the bearish divergence [pink] formed between the price and the OBV from early 2020 to mid-2020 was over and there was no such divergence [yellow] since mid-2020. In fact, the OBV has formed higher lows, indicating a slow increase in volume. The RSI noted a similar move and suggested a slow rise in the bulls, with the momentum being supported by the white line.
Conclusion
Litecoin envisioned a weekly red candle at press time, however, it needs to build more steam for a multi-year breakout. Right now, it is too early to decide whether the price will go up or down. However, $ 50 seems like a level to watch out for in the days to come. Furthermore, Bitcoin also appeared to be stuck in an elevated time frame that was bearish. Therefore, care should be taken not to engage in long-term trades without proper confirmation or reasoning.
