Litecoin (LTC) could be heading the bearish route. According to CoinMarketCap, LTC has nosedived by 0.52% or trading at $56.50 as of press time.
Litecoin going the bearish track
LTC down by 0.52%, trading at $56.50
LTC engulfing candlestick shows increased selling pressure
In the past few days, LTC is seen to be hovering close to its midpoint. Notably, Litecoin is down by 12.75 from its five-day high yet spiked by 7.26% compared to its five-day low that registered at $52.56.
LTC price is gliding above the key resistance level. The support is now spotted at $54.17 and resistance is present at $56.13. In essence, LTC could experience extreme volatility once the price rally loses steam.
Litecoin Trading at Low Volumes
It can be observed that Litecoin has been trading at ridiculously low volumes lately which means that today’s trading volume is comparably low to the coin’s average trading volume in the past week.
Now, the improvement in market performance has restored the faith of many LTC buyers. It seems there could be hope for a bullish momentum.
However, the 62-$64 range could be getting in the way of a bullish movement. In turn, LTC is seen to have plunged below the EMA ribbons to convey a strong selling or bullish streak.
More so, the recent formation of an engulfing candlestick pattern showed a strong uptick in terms of selling activity.
There is a strong knock-back of higher prices seen close to the 20 EMA that could initiate a near-term disengagement before any opportunities for revival come to light.
LTC RSI Shows Intense Selling Pressure
The buying upturn of Litecoin has propelled the altcoin to test higher levels in the past month. So, while the bears corroborate the $64-ceiling, Litecoin still sees an ascending channel pattern in this specified timeframe.
Following a short-term compression phase spotted close to the EMA ribbons, LTC finally witnessed a bearish breach splicing under the EMA ribbons. As of press time, LTC has found key support at the $53.7-zone.
So, even though the EMA ribbons aren’t looking so positive, the bears aim to shift the near-term trend. Striking a bearish punch on the ribbons would most likely strengthen the selling pressure.
A rebound is spotted at the $53 level that can aid the buyers in triggering a sluggish movement drawing close to the EMAs. Now, any close under this support line could open up the altcoin to a prolonged setback.
When this happens, LTC may dart closer towards the $50-zone with the bulls going in to trigger intense buying pressure.
RSI for Litecoin shows a strong selling trump card. Now, a prolonged pullback will only work in the favor of the sellers. But, OBV presenting higher troughs showed a minimal bullish divergence.
An uptick in the key support zone can potentially help the buyers to put an end to near-term bleeding. Nevertheless, LTC’s ADX is still having a hard time improving its delicate position.
LTC total market cap at $3.9 billion on the daily chart | Source: TradingView.com
Featured image from Analytics Insight, chart from TradingView.com