The Litecoin news have been exciting lately as the cryptocurrency failed to progress above the crucial $50 level, making investors worry about whether good times will come for this altcoin. The LTC analysis today shows us that the Litecoin consolidation period could continue before we see any new gains for the cryptocurrency.
In that manner, it is safe to say that LTC is stable now but has also maintained a consistent upward trend with modest gains over the past week. If we take a look at the 4-hour chart for LTC/USD, we can see that there has been a steady price action leading to the formation of an ascending parallel channel.
Therefore, a breakout can come only after the Litecoin consolidation period is maintained. The placement of a moving average tells us a different tale – it shows how Litecoin suffered a bearish crossover in which the 50 daily moving average slid below the 100 daily moving average.
From a technical perspective, the cryptonews now show that there may be a bullish crossover in the near future for LTC. However, the bearish trend noticed last week is still here – after the recent slump in LTC’s price progress followed when the moving averages went above the price candles.
Intense trading activity was noted in the current price level, which was indicative of a potential price consolidation in the near-term. The rising RSI above the 50-neutral zone suggested an increasing buying sentiment in the market, which gave rise to two scenarios.
The first scenario now is for the Litecoin consolidation phase to continue, and the probability of a bullish breakout is supported by the 50 DMA below the LTC price candles as well as the falling 100 DMA and the RSI indicator in positive territory. If the current trend unravels, the LTC cryptocurrency could be retested at points near $46.
In the second scenario, a bearish breakout would crush the price of LTC and crush the formation of an ascending parallel channel. In this case, the LTC analysis shows that the coin could find support from the 50 DMA at the level of $43.30. Another support was found at $40.42, a level unseen since April 21.
Currently, the price of Litecoin (LTC) is trading at $44.34 with a 1.90% on the upside.