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Litecoin Price Analysis: 24 January

Akashnath Sumukar

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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 has traded within a range since late December and approached the mid-point of the range. Technical indicators showed that the momentum has not quite flipped bullish for LTC, meaning that the reaction of the price at the $149 level will be of paramount importance.

Litecoin 12-hour chart

Litecoin Price Analysis: 24 January

Source: LTC/USD on TradingView

The range between $123 and $180 was split using Gann’s rule of eighths to give the levels of importance within the range, with the 50% level at $149 being the most important. Over the next few days, a rejection at this level will see LTC revisit $135, and possibly drop as low as $123. Climbing above the 50% level, like it did a few days back, will see Litecoin touch the $163 level of resistance.

The RSI was at neutral 50, showing a lack of momentum toward either direction. The OBV was quite flat over the past week, denoting equilibrium between buying and selling volumes. This has to change for a strong move for LTC to materialize.

The coin’s trading volume was also low. A move towards above-average trading volume will show market conviction and can be used to enter a position in the direction of the move.

The Awesome Oscillator was unable to go above the zero line, even though it formed a bullish twin peak formation on the 18th of Jan, followed by LTC surging by nearly 15% from $140 to $163. A similar bullish twin peak set up will give a buy signal.

Conclusion

At the time of writing, neither buy nor sell signals were given by Litecoin. However, some factors such as trading volume or the price reaction at $149 can give a trader the signal to enter the market in an appropriate direction. The 25% and 75% levels are take-profit levels, and based on the momentum of LTC the range lows and highs can also be tested.


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Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.

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