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Disclaimer: The results of the following article attempt to analyze the emerging patterns in the Litecoi long-term market and its impact on the price.
The ball has been set in motion for an altcoin rally as Bitcoin sees renewed interest in the market. While many altcoins have been devoid of a lot of volatility in the past, this rally has provided a chance to break out of the consolidation and climb higher. Litecoin [LTC] reaped the rewards of this Bitcoin-led growth and was trading at $ 57.55, at press time.
The digital asset has been bouncing between $ 42 and $ 54 for a long time and while it tested the support at $ 46 again, the price climbed to a high of $ 61 on October 25. There was a slight correction in the price, but the momentum seemed to be supporting a higher price.
Source: LTC / USD on TradingView
Litecoin’s daily chart suggested that after the 23% rise in one day, the price of LTC was making higher highs. These higher highs were forming within an ascending channel that had previously noticed a downward break. Likewise, the current price trend could also lead the price to drop lower, even if it was noticing a bullish rally at the time.
This upward trend was highlighted in the signal line which took a position below the candles, while volatility was also high. This volatile market may result in a temporary rise in the price of the asset, but LTC had already reached an overbought zone, which meant a turnaround could be approaching. This was highlighted by the Relative Strength Index [RSI] who noticed that the value crossed the 70 level indicating that the asset was overbought and immediately sunk following selling pressure. This minimal selling pressure brought the asset back below the overbought zone, but the value remained close to this zone.
Source: LTC / USD on TradingView
The Fibonacci retracement tool marked the important support and resistance levels for Litecoin over a given period. Given the previous consolidation phase of LTC, there was strong immediate support marked at $ 53.97. The current price has broken below the support at $ 57 and is moving towards $ 53. This has been an important level of LTC as it has been tested four times previously, which suggests the potential rebound that could follow if the value plummeted to this level.
