The Litecoin market was holding on to a high value and has managed to find support at $163.91. With a market capitalization of $13 billion, the altcoin has been trading at $194.82. Unlike the volatility that was visible across the crypto market, the Litecoin [LTC] market has been holding on to its value while keeping the selling pressure in check.
Litecoin 1-day chart
Source: LTCUSD on TradingView
Litecoin’s price has been moving between $163.91 and $243.95 since February and has not managed to breakdown from this range since. This wave-like movement between the aforementioned level has pushed the digital asset towards a bullish reign.
However, it may not be able to hold onto the bullishness as the bears in the market progress. This could be an opportune time to short the digital asset.
Reasoning
The low volatility in the market was highlighted by the convergence of the Bollinger Bands. However, this low volatility has not been able to hold the bears at a distance. The market appeared to be at a point where it was going to flip the market trend.
The signal line has been under the candlesticks, which meant that the price is trending higher. However, the signal line was close to crossing over, which suggested that despite the current bullishness, the LTC market was losing steam and may witness a drop. Similarly, the 50 moving average was also acting as a support, however, if the price breaks the support it may be heading towards $163.91.
While the momentum in the market has been lost due to the low volatility, a rise in momentum could be seen as the price drops.
Crucial levels
Entry-level: $187.62
Take profit: $163.08
Stop-level: $210.25
Risk to Reward: 1.08
Conclusion
The Litecoin market has been holding strong in the long-term, however, there could be a drop coming up. The indicators were showing the trend has reached an inflection point and could reverse anytime now. The traders can take profit at $163.91.
