Will Litecoin break out of its current range?
After breaking through the bottom in December, Litecoin (LTC) has made a strong comeback. In January, this digital currency experienced a growth of almost 50%. However, the price pullback caused the value of LTC to drop and the currency is now in a certain range on the daily chart.
According to Valex and quoted by NewsBTC, the price of Litecoin has decreased by 0.3% over the past day, which confirms the horizontal movement of the price. The technical outlook of Litecoin still has an upward momentum because the demand for this coin is still high.
The price of Litecoin decreased and left the range of oversaturation, but buyers still have the upper hand in the market. However, the decrease in the amount of accumulation can cause the bears to take control of the price behavior. If this trend materializes and continues through the week, it could lead to a break of nearby support. The current price of Litecoin is already 78% below its all-time high recorded in 2021.
The price of LTC at the time of writing is around $88. The digital currency attacked several resistance levels several times in the past few weeks but failed to sustain its upward trend. Litecoin faced two stiff resistance levels before the subsequent price decline.
These two key resistance levels are located at $90 and $92. If the demand for this altcoin remains stable, we can see this currency trying to attack $90 again.
On the other hand, Litecoin’s closest support is in the $86 range. If the price correction continues, the next hurdle is at $82.
Litecoin analysis shows that the demand for LTC has worn off a bit over the past few weeks. The relative strength index shows this trend by decreasing below the level of 60.
However, the 60 range still confirms that buyers are outnumbering sellers. The passing of the price from the 20-day simple moving average also confirms this point; Buyers are determining market momentum.
The price of this currency is still higher than the 50-day and 200-day moving averages, which shows its recent bullish trend.
Due to the decrease in buying pressure, the MACD index, which indicates market momentum, formed a bearish intersection, which is usually associated with sell signals.
This issue can cause the price of this currency to decrease in the coming days. The parabolic SAR indicator, which is a measure to evaluate the trend and the amount of price momentum, remained positive.
Will Litecoin go out of its current range? The first time in the blog Valx. appeared.