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Litecoin, like many altcoins on the market, has seen its price drop on the charts. At press time, a consolidation appeared to be underway following the aforementioned decline, as a result of which an LTC may be required for a small pump. Overall, it was observed that Litecoin’s price has risen for a small pump, which could turn bullish if it breaks the broader consolidation pattern.
Litecoin 1-day chart
Source: LTCUSD on TradingView
Litecoin’s one-day chart noted a consolidation pattern in the form of a symmetrical triangle. A pump that started on September 21 pushed LTC’s value by 24% from $ 41.57 to $ 51.55. However, following the same, a bearish divergence contributed to the 7.55% drop in price from where it was at the time of writing.
Immediate support levels for LTC included $ 45.23 and $ 39.80, while immediate resistance levels included $ 50.80 and $ 63.94. However, there may be some intermediate resistance between the aforementioned resistance levels and LTC can test each of them, before continuing higher.
As of now, the LTC asset looks bullish in the short term, however, if the price successfully breaks out of the consolidation pattern, it could be long term bullish.
The RSI has indicated a short-term rebound near the 50 level [aka neutral zone], one that could be related to the short-term rebound mentioned above.
The Stochastic RSI indicator showed a sharp decline from the overbought zone and towards the oversold zone. A bullish crossover is still far from happening, however, it could be a possible sight within a few days.
The OBV indicator seemed to be holding steadily at $ 16.5 million or higher, a figure that indicated that no new volumes had entered the trade. This could imply a false appreciation of the price.
What to expect?
A rise of 7% or higher can be seen in the next week, however, any rise above the $ 50.77 consolidation would be bullish. A rebound below this level would be bearish for the currency.
As the RSI and Stochastic RSI were bullish and the volume indicator noted even volume, a rally to $ 50.77 can be expected. Any increase above this level would be a false increase.
