Litecoin (CRYPTO: LTC), an early one Bitcoin (CRYPT: BTC) spin-off and peer-to-peer cryptocurrency consolidated on Saturday morning after rising over 12% on Thursday and Friday. Many cryptocurrencies have recently seen a revival from their midsummer lows, partly due to seasonality.
See also: How to Buy Litecoin • What is Litecoin?
The Litecoin Chart: Between August 13th and 15th, Litecoin’s Relative Strength Index (RSI) soared into the overbought territory above the 70% mark. Sellers then got into the crypto and took their profits at the high, which caused the price of Litecoin to drop 13%, causing the RSI to drop to a much more comfortable 57%.
Litecoin’s month-long decline, followed by its rise northward, has caused the crypto to settle in a rounded bottom pattern. The crypto has tested and held above the curved trendline on 12 different occasions.
On Saturday morning, Litecoin was trading relatively flat at very low volume, suggesting that the cryptocurrency was in a consolidation phase. At around 11:00 a.m., Litecoin was around 85,000 in volume compared to its average 10-day volume of 232,212.
Litecoin trades above the eight- and 21-day exponential moving averages (EMAs), with the eight-day EMA trading above the 21-day trend, both bullish indicators. However, the crypto is trading below the 200-day simple moving average, which suggests that general sentiment is bearish.
- Bulls want to see big bullish volume and push Litecoin above $ 189, which would be a higher daily high to confirm the uptrend is still intact. There is price resistance above the USD 193 level and if Litecoin can rise above that level it has scope to move towards USD 208.
- Bears want a large bearish volume to come in and the crypto to fall below the curve of the rounded bottom pattern. If Litecoin loses the area as support, it could fall towards $ 162.
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