Litecoin price shows potential, although the altcoin is currently showing bearish sentiment on the daily chart. In the same time frame, LTC is down by close to 6%. Over the past week, the altcoin has lost more than 6% in price.
There was a break below two important supports, but currently, the LTC bulls are defending the $84 price bottom. The technical outlook for LTC suggested that the bears would remain in control until it attempts to break the immediate resistance mark.
Altcoin demand also remained subdued as buyers were less active on the charts. As a result the savings also dipped. For LTC price, there are two important resistance levels that the coin needs to flip in order to target $100. Over the past few weeks, Litecoin has been trading in a range that extends from $87 to $94.
The market capitalization of Altcoins also fell in the past 24 hours, indicating that sellers were active in the market. Extensive market power will be required if LTC is to breach the upper limit of the band. LTC is trading down 79% from its 2021 all-time high.
Litecoin Price Analysis: One Day Chart
LTC was trading at $89.30 at the time of writing. The altcoin price climbed above the $84 support area, which is acting as a strong price bottom. LTC is now trading near the upper band of the price range, and a push from buyers could take the price towards $94, which is an immediate resistance for the altcoin.
If LTC manages to breach $94, the next hurdle will be $96. A move above $96 would pave the way for the altcoin towards $100.
On the other hand, if LTC loses the $84 support level, it will park itself at $79, further consolidating the bears. The amount of LTC traded in the previous session was in the red, indicating a stronger presence of sellers than buyers.
technical analysis
Litecoin’s buying power has continued to decline over the past few weeks. The Relative Strength Index crossed the halfway line, indicating less buying strength and bearish on the charts.
LTC price moved below the 20-simple moving average (SMA), which suggested that sellers are still driving the price momentum in the market.
If LTC manages to move above the $94 price mark, the price of the altcoin will move above the 20-SMA line, which will help the bulls to regain strength.
Other technical indicators also maintain bearish strength on the daily chart. The Directional Movement Index, which reflects price direction, was negative as the -DI line (orange) was above the +DI line (blue). This meant that the price was trending down.
Bollinger Bands measure the volatility and volatility of prices in the market. The bands were wide, suggesting the possibility of price volatility in subsequent trading sessions.
Credit : www.newsbtc.com