Litecoin has seen a very static 30-day trading period, increasing by just 3% to reach its current price of $120. The coin started to show signs of weakness this month as LTC dropped heavily against BTC. However, the LTC/USD market is still following a rising trend line which puts it on the bullish side.
Litecoin remains the 4th largest cryptocurrency by market value with a market cap of $7.52 billion. Litecoin is also scheduled to undergo a block halving next month, and we anticipate LTC rising against BTC in the run-up to the halving.
Looking at the LTC/USD 1-day chart:
- Since our previous Litecoin analysis, Litecoin has managed to hold at the support around $114 provided by a short-term .382 Fib retracement level. Litecoin is now trading above $120 and has been trading above a rising trend line for some time now.
- From above: The nearest levels of resistance lie at $125 and $130. Higher resistance is located at $136 and $140. If the sellers continue above $140, significant resistance is found at $145 which is the long-term bearish .786 Fibonacci retracement level. This resistance caused problems for LTC during the month of June.
- From below: The nearest levels of support lie at $120 and the rising trend line. If the sellers push the market beneath the rising trend line, support toward the downside lies at $114, $110, $102, and $100 (which also contains the 100-day EMA). Below $100, further support is found at $97.06, $95, and $90.
- The trading volume has fallen heavily in July, which could be a sign that sellers are finished selling.
- The Stochastic RSI recently produced a bullish crossover signal in oversold territory, which is a strong sign for the bulls. However, we will need to see the RSI break above 50 to indicate that the bulls are in control.
Looking at the LTC/BTC 1-day chart:
- Litecoin has struggled to break above the 0.01150 BTC resistance level in July and has consequentially fallen lower into support around 0.0101 BTC.
- From above: The nearest levels of resistance lie at 0.010689 BTC, 0.01111 BTC, and 0.01138 BTC. Above this, higher resistance is found at 0.0012 BTC, 0.0127 BTC (which contains the 100-day EMA), 0.013 BTC, and 0.0135 BTC.
- From below: The nearest level of support now lies at 0.0101 BTC. Beneath this, further support is found at 0.01 BTC and then at 0.009415 BTC (the .786 Fib retracement level). If the selling continues beneath 0.009415 BTC, the next levels of support lie at 0.009 BTC and 0.0082.
- The Stochastic RSI produced a bearish crossover signal in overbought territory, which is a bearish sign. Furthermore, the RSI remains well below 50, indicating that sellers are in control of the market.
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