Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
After hitting the resistance level of $296.74, Litecoin saw its price retrace by almost 38% on the charts. Alas, even though a later recovery pushed the price of the digital silver towards $265 at press time, market momentum was still lacking.
Litecoin daily chart
Source: LTCUSD on TradingView
Litecoin’s daily chart suggested that the crypto’s price had broken out of its ascending channel and was once again recovering. However, the aforementioned fall has turned the market into a more cautious one, and a strong effort was being made to hold on to the press time price.
Reasoning
As the price slipped, bearish volatility took over the market. However, as the altcoin’s price stabilized, its volatility also was squeezed out. As the price continued to move sideways, the Signal line was indecisive of the price trend as the buyers and sellers remained active.
This confusion was highlighted by the Relative Strength Index climbing towards the overbought zone, while money was increasingly leaving the market. The RSI value, at press time, was 57, a figure which did not affirm a bullish trend, but underlined the rising buying pressure. Meanwhile, the Chaikin Money Flow suggested that traders had realized their gains, especially since money was now leaving the market.
Litecoin may continue its low movement between $244 and $271 in the long-term as the short-term market gains stability. If the buying pressure continues to rise, as indicated by the RSI, the price may retest the resistance at $296.
Conclusion
The current Litecoin [LTC] market is noting a period of consolidation. With April having been volatile, the upcoming period may see the price move right above the level at $244. However, with Bitcoin and Ethereum markets’ witnessing spurts of gains and losses, the altcoin market could take a sudden turn as well.
