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The sellers of Litecoin have failed in their last two attempts to break below the $ 48 support level, creating a double bottom diagram on the 4-hour chart. The price has yet to test the neckline around $ 68 before confirming that an inversion is in the cards.
The 100 SMA is still below the 200 long-term SMA, however, so the path of least resistance could still be downward. In other words, there is a change that the downward trend could still recover. Then again, the price is trading above both dynamic bending points at moving averages so you can keep dynamic support from here.
Stochastic is moving to indicate that the buying pressure is at stake, but the oscillator is already approaching the overbought zone to reflect the exhaustion. Turning lower could bring sellers back and bring the funds back. RSI has some space to rise before reaching the overbought conditions, so buyers could have energy to push for further gains.
A handful of positive updates related to Litecoin could be responsible for its quick rally in the last 24 hours. The first is the addition of litecoin support from SFOX as part of its broader business expansion to become a leading institutional wealth management platform. In its press release, the company stated:
As we turn to investors accustomed to the Wall Street standards, we add only cryptocurrencies of which we are absolutely confident. Litecoin has utility and liquidity and is supported by a large team of Litecoin Foundation. We are happy to meet our promises and offer our customers an option they have requested.
The next is the availability of support for Litecoin Lightning Network at RaspiBlitz. CoinText also announced its willingness to add litecoin and dash to its SMS service, which offers microtransactions without the need for a bank account.
Images courtesy of TradingView
