After the correction that took place at the start of the week, the market appeared to be stabilizing. Litecoin saw its price fall during the past few days but since have found strong support, at the time of writing.
With a market capitalization of $12.08 billion, Litecoin rested on the eighth position on the CoinMarketCap list and was being traded at $181.09.
Litecoin daily chart
Source: LTCUSD on TradingView
The Litecoin chart above noted the surge in the value of the digital asset over time and the price has now broken out of the ascending channel pattern. LTC lost nearly 38% of its value in three days’ time and was pushed to a low of $155. However, as visible over the past couple of days, the digital asset has recovered and was trading above $180.
Given the current volatility in the market, LTC may continue to move within $171 and $193 for a while.
Reasoning
The Bollinger Bands indicator highlighted that the volatility surged since the beginning of the ascending channel pattern. The volatility increased along with the price, but now that there has been a breakdown, the market is appearing relatively stable.
Meanwhile, the 50 Moving average was currently acting as a support for the price. While the buyers and sellers remain in sync as highlighted by the relative strength index. At equilibrium, LTC’s price has been equally traded by buyers and sellers.
Nevertheless, the momentum was escaping the market as the value dropped. A price swing, if visible, could add to the momentum, but until then it may remain low.
Conclusion
The Litecoin chart showed that the bullish momentum has finally met with a roadblock, but has acquired stable ground. The price may continue to trade between the aforementioned level, as the buyers and sellers try to shift momentum to their benefit. However, the traders will have to continue to watch for volatility in the extended crypto market, for a sudden price swing.
