Connect with us


Litecoin [LTC]: Here’s how you can minimize risk before placing bets



Source: Canva

Litecoin [LTC] bears doubled down on their consistent efforts to close below the $98-mark for nearly 17 months. After the market-wide liquidations, the close below this mark pulled LTC into a relatively low liquidity zone.

Thus, it took a swift plunge below some crucial price points while chalking out a bearish pennant on the daily chart.

A potential close above the basis line (green) of Bollinger Bands (BB) could affirm the chances of a 38.2% retest in the coming times. At press time, LTC traded at $65.755, up by 5.6% in the last 24 hours.

LTC Daily Chart

Source: TradingView, LTC/USD

The altcoin took a bearish tilt after a strong pullback from the $106-level on 5 May. Moreover, LTC hasn’t been able to advance above the basis line of BB for nearly two months now.

After the buyers failed to protect the $91-$98 range, LTC saw an over 51% loss to its 18-month low on 12 May. During this fall, the 38.2% Fibonacci resistance stood quite well to curb all the buying rallies.

With the basis line of BB still looking south, the buying comebacks still needed to register higher trading volumes. Furthermore, the bearish pennant’s breakdown halted near the lower band of BB. With the declining gap between the upper and lower bands, LTC could see a low volatility phase near its POC in the coming sessions.

A convincing close beyond the $67-mark would aid LTC’s recovery toward $72 near the 38.2% Fibonacci level. Post which, the quantum buying volumes would influence the future trajectory.


Source: TradingView, LTC/USD

The Relative Strength Index (RSI) has been rebounding from the 40-mark resistance for the last 25 days. A potential rebound from this level would confirm a ‘medium’ bearish divergence with the price.

Investors should look for a close above this mark before placing long bets in the near term. 

Further, the Awesome Oscillator (AO) seemed to continue the gradual movement toward the zero-line. Any close above the equilibrium would affirm a bullish twin peak setup.


Placing long bets may not be the best course of action until LTC crosses key levels on the front of its technical indicators.

A close beyond the $67-zone would open up near-term recovery gates toward the 38.2% level. But the alt would likely enter a squeeze phase until the buyers consistently ramp up the buying volumes.

Finally, LTC shares a staggering 98% 30-day correlation with the king coin. A close eye on Bitcoin’s movement would be imperative to make a profitable move.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.