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Disclaimer: The following article attempts to analyze the emerging patterns in Litecoin’s short-term market and its impact on price.
Litecoin has seen a rise in its value as the price of Bitcoin [BTC] rose on the charts. However, it failed to overcome its early September losses. Despite the low-end move, LTC broke out of a major price at $ 49.48, which was now its support. The digital asset was valued at $ 49.94 at press time as its resistance remained at $ 51.41.
Source: LTC / USD on TradingView
Litecoin’s value was currently consolidating between $ 49 and $ 51. Bollinger bands indicated a reduction in volatility in the market, while the signal line indicated that a trend reversal may be on the way.
The converging bands indicated that the price action was tightening as the rising price was experiencing a decline. The signal line that had been positioned below the candles in recent days, suggesting that the price was moving higher, may cross above the candles, indicating the reversal of the price trend.
This price turnaround could be due to the growing selling pressure in the market indicated by the Chaikin Money Flow. Over the past week, the indicator had remained well in positive territory noticing buying pressure in the market, however, on 13 October, the CMF fell below zero and was at -0.07, noting the evolution of the pressure of sale in the market.
Source: LTC / USD on TradingView
Interestingly, the positioning of the 50 moving average suggests that the bullish trend in the market has not yet lost momentum and may be pushing the value of LTC again. However, to be in full swing, the asset will need to break through its resistance at $ 51 and rise further. The endurance has only been tested twice since the September crash, which means it may take longer to overcome.
Meanwhile, in the current period, the checkpoint for the LTC value was below $ 46.24 as it was a highly traded range. The current price is not receiving much volume and may be heading towards support at $ 48 before testing resistance again.
