Litecoin (CRYPTO: LTC), an early Bitcoin (CRYPT: BTC) spinoff and peer-to-peer cryptocurrency was consolidating on Saturday morning after rising over 12% on Thursday and Friday. Many cryptocurrencies have seen a revival recently from their mid-summer lows which is due, in part, to seasonality.
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The Litecoin Chart: Between Aug. 13 and 15 Litecoin’s relative strength index (RSI) was measuring up into overbought territory above the 70% level. Sellers then came into the crypto, and took their profits out at the high, dropping Litecoin’s price down 13% which caused the RSI to fall toward a much more comfortable 57%.
Litecoin’s month-long decline followed by its rise northward has caused the crypto to settle into a rounded bottom pattern. The crypto has tested the curved trendline on 12 separate occasions and held above it.
On Saturday morning Litecoin was trading relatively flat on very low volume indicating the crypto was in a period of consolidation. As of about 11:00 a.m. Litecoin’s volume was at about 85,000 compared to its average 10-day volume of 232,212.
Litecoin is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is trading below the 200-day simple moving average, however, which indicates overall sentiment is bearish.
- Bulls want to see big bullish volume come in and drive Litecoin up over the $189 level which would be a daily higher high to confirm the uptrend is still intact. There is a price history resistance above at the $193 level and if Litecoin can rise above the level it has room to move up toward $208.
- Bears want to see big bearish volume come in and drop the crypto down below the curve of the rounded bottom pattern. If Litecoin loses the area as support it could fall toward $162.
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