The price of Litecoin (LTC) continues to rise after an impressive run last month – but is it ripe for a pullback? Let's take a look.
If we take a look at the Fibonacci retracement tool and pull a simple line from the all-time high to the recent low, we can see that the price of Litecoin (LTC) versus Bitcoin (BTC) respects each channel as it steps up – step up.
After the breakthrough of 0.011 BTC and consolidation of the Yellow Channel, Litecoin subsequently broke 0.014 BTC. Today, the price of "Silver for Bitcoin's Gold" has come down from what is most likely to offer serious resistance – 0.016 BTC. This level acted as a prior support from April to mid-June 2018. Since it is known that the support of the past is often a drag, it is obvious that LTC will have difficulties to break this level without further consolidation and a healthy retreat.
Relative strength indices
The Daily Relative Strength Index (RSI) has once again entered the overbought territory, suggesting that the price of Litecoin (LTC) may need to cool.
Even more disturbing, however, is the strong bearish divergence that continues to give way to their ugly head. As you can see in the graph above, the price of Litecoin continues to rise and rise to higher altitudes, while the RSI continues to fall. This is generally a bearish signal that the price has to correct itself, and now it seems to be a ripe time for Litecoin to experience a profitable event as it encounters a significant amount of support from the past.
If Litecoin (LTC) is about to retreat in the near future, there is considerable support that should prevent a massive decline.
For example, the band of the exponential moving average (EMA) offers the first lines of defense against the bears. These lines would likely correspond to the Fibonacci value between 0.0135 and 0.014 BTC.
In a big raffle and a massive red candle, the 200-week moving average (blue line) would be the last line of defense. Closing below this level would be downright catastrophic – but that's unlikely at present and it's not worth worrying about.
What do you think about the Litecoin (LTC) Award? Tell us your opinion in the comments below!
Images courtesy of TradingView.
The Post Litecoin Price Analysis: Making the Most Resistance first appeared on Bitcoinist.com.
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Contribution Source: Litecoin Price Analysis: Beat on Great Resistance
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