Litecoin [LTC], the digital silver to Bitcoin [BTC], is nearly two months away from its highly anticipated halving. With the price of the cryptocurrency soaring by over 300 percent in 2019 alone and breaking the $100 mark, the halving bulls can either continue their rampage or be overthrown by a bearish onslaught, warns an analyst.
A recent report by CryptoMedication from Zerononcense, detailed the imminent price movement for Litecoin, based on a slew of indicators. Given the obvious price waves LTC has amassed over these past few months, the analyst forewarns that, “at first look, Litecoin’s price action is extremely bullish.”
However, zooming out on the 1-day chart reveals three key observations. First, the cryptocurrency is “nudging” a level of “overhead resistance,” at the moment. Second, Litecoin has “clearly broken” a level of “long term overhead resistance,” using volume and momentum.
Further, the analysis stated that the cryptocurrency is facing strong overhead “horizontal resistance,” at $117.54. At press time, LTC was trading at $117.08. In light of this resistance level, he added,
“The question that must be answered at this point is whether there is enough momentum behind Litecoin for it to break past the $117 point of resistance. “
In order to analyze “momentum,” the analysis resorts to using RSI and Volatility RSI. First of all, the RSI of 14, right off the bat, is “not good for Litecoin bulls,” as it is a “tell-tale sign that buy pressure that is starting to subside and that the asset in question, may flip bear soon.”
A key “warning sign” was looking at the above in the context of the cryptocurrency at overhead resistance.
With respect to this indicator, the report adds,
“From what we can see above, the indicator has signaled that there will be increased growth in the near future for Litecoin.
However, in light of the (14), this indicator should be taken with a grain of salt.”
Moving on to moving averages, the report highlighted the 50-day MA, stating that it had been “successfully tested.” The report added that if the price of LTC drops, a “reliable point of support,” would be the 50-day MA.
The weekly resolution pointed to the cryptocurrency “lingering” at the same point. However, a break past the same could result in “astronomical gains” for the cryptocurrency. The RSI on the same is described as “bullish.” However, the Balance of Power RSI is not and hence, should be “watched very closely.”
“In the opinion of Zerononcense (not financial advice) if one is not in Litecoin currently, an entry at this point (at the resistance) is more than likely not prudent.
However, this does not mean that a short is inherently intelligent either.
As noted in the above photo (posted below for convenience), the price of Litecoin is bound to either soar upward or plummet downward depending upon what ‘decision’ the market makes”
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Crypto News – 26 June – Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
— AMBCrypto (@CryptoAmb) June 26, 2019
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