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Analysis

Litecoin Price Analysis: 08 January

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Source: Pixabay

Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice

Litecoin [LTC] has been visiting unseen price levels off-late owing to Bitcoin’s surging price. Despite the rallying market, downwards pressure has put the LTC market in an indecisive position in the short-term.

LTC was being traded at $172.09, while the hourly candle appeared to be a long wick with minimal volume.

Litecoin one-hour chart

Source: LTCUSD on TradingView

The Litecoin market was noting an active crypto market with the price rising higher within an ascending channel. This ascending price has followed a strong sell-off witnessed from $176 to $149, after which the price bounced back. The price zoomed past all the resistance levels visible for the digital asset and has been trading above $170.

However, this erratic movement of the token did not display a clear picture for the digital asset in the short term.

Reasoning

The indecisiveness in the market was visible as the Relative Strength Index was bouncing between the overbought and oversold zone over the past days. The value of RSI has been once again heading towards the overbought zone, but the selling pressure has kept it close to the equilibrium zone.

Whereas, the Awesome Oscillator has been indicating the rise of buying pressure in the short term as the value of the indicator was pushed above the zero-line. Even though it indicated that the short-term momentum was rising faster than the long term momentum.

Whereas the 50 moving average has been indicating a bullish market, but traders are moving to sell the digital asset. This could briefly push LTC into the sell zone, but there was no clear indication of a definitive short-term move.

Conclusion

The short-term momentum of Litecoin’s price has been undecided as most cryptos have remained in unchartered territory. While Bitcoin has also been moving in new price-levels, a sudden selling-pressure could impact the altcoin market too quite significantly.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.