The cryptocurrency market has been recovering from the sudden selling pressure it witnessed a few days back. Litecoin [LTC] has been trying to find a stable price level in the market currently, however, there have been recurring sell-offs pushing the coin even lower.
At the time of writing, the digital asset was trading at $182.68 with a market capitalization of $12.16 billion.
LTC one-hour chart
The above chart of Ltiecoin highlighted the rise and fall of the price. Although a small surge carried the value higher, selling pressure has now replaced it. The price has been testing the support at $182.13.
If the price fails to hold onto this support, we may be seeing another sell-off in the LTC market.
The Bollinger Bands have been diverging which was a sign of increasing volatility in the market. As the volatility in the market increases, there is a possibility for a trend change. However, the signal line along with the 50 moving average has remained under the candlesticks noting that a certain level of bullishness still exists.
However, the momentum was on a decrease as the selling pressure continued. The momentum has shifted towards the sellers’ side and may fall into the negative zone if the price breaches the support.
Meanwhile, the relative strength index has also moved away from the equilibrium zone. However, despite a selling pressure, the buyers were trying to level the market as the RSI was heading closer to the overbought zone.
Take profit: $179.14
Risk to Reward: 1.06
The current trends in the Litecoin market were more bearish than bullish. As the coin tests support, there is a potential fall that looms at large. It may drop to $176 in the short term, however, the price may see a further retrace from this point if a bullish trend reversal fails to materialize.