Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.
Litecoin [LTC] has not seen a considerable amount of volatility in current weeks, relative to the remainder of the altcoin market. The previous month noticed LTC vary between $52 and $64, a modest 22% value distinction measured from the underside.
Within the meantime, Bitcoin [BTC] slipped under the $20.8k help after a agency rejection at $24k in mid-August. The USDT Dominance metric has additionally risen previously month to point buyers transferring to holding Tether and fleeing the crypto market.
Concern might additional rise within the weeks to come back, and Litecoin merchants will be positioned to capitalize on the ensuing value motion.
LTC- 1-Day Chart
Supply: LTC/USDT on TradingView
The Quantity Profile Seen Vary confirmed the Level of Management (pink) to lie at $55.07. The Worth Space Low and Excessive lay at $42.68 and $69.3 respectively. The quantity software highlighted that a big portion of the buying and selling exercise since June has been inside the extremes marked on the chart.
Since June, the value has shaped a variety between $65 and $43.4, values which can be fairly near the VAH and VAL. At press time, LTC exchanged arms at $61.26 per coin and there was some momentum upward based mostly on the previous few days of buying and selling.
It was seemingly that the $65-$69 area would firmly oppose bullish intentions, and a check of this zone might supply alternatives to promote or brief Litecoin. A stop-loss above $70 will be thought of, with a take-profit at $55.1 (PoC) and $42.6 (VAL).
Rationale
Supply: LTC/USDT on TradingView
The Relative Power Index (RSI) has been caught inside the 60 and 40 and has been since July. This was indicative of the formation of a variety for an asset. On the time of writing, the RSI approached 60 and will face rejection within the 60-65 band. The Stochastic RSI approached the overbought territory as nicely.
The Directional Motion Index (DMI) additionally supported the concept of a variety formation. The Common Directional Motion Index (ADX) was unable to climb above the 20 mark and keep there in current months. This indicated the dearth of a powerful pattern behind Litecoin. The Chaikin Cash Circulation (CMF) has additionally stayed within the impartial space round 0, or beneath the -0.05 mark.
Conclusion
Taken collectively, the indications confirmed a scarcity of robust pattern behind Litecoin and in addition some promoting stress in current weeks. It didn’t but seem seemingly that LTC would be capable to break above the $69 resistance. Bitcoin was at a deadly spot for bulls as nicely. Therefore, a pointy downward transfer for LTC can’t be dominated out within the coming weeks.
