Litecoin was among the most bearish pairs during the previous three months in the crypto market. losing around 75% of the vale, as it crashed from $414 and continued making lower lows until it formed a support zone above $100. The 20 SMA (gray) was pushing it down, which was another bearish sign, since this is the smallest moving average, indicating that sellers were jumping in on the first opportunity.
Although, the reversal came in the crypto market in the last week of July, which pulled LTC/USD up with it. But, there has not been any buying pressure for this digital coin, apart from the pull from the rest of the market. Gains have been smaller than in many other main cryptos, which have more than doubled in value.
Litecoin on the other hand, has been trading in a range during the last three weeks with a high around $190 and a low around $165-70. As we mentioned in our 2021 Litecoin forecast and it is shown on the daily chart above, the 20 SMA turned from resistance into support for Litecoin about two weeks ago, which was a bullish signal, but now the price has slipped below that moving average and is finding resistance there now.
Litecoin Analysis – LTC/USD H4 Chart
Litecoin bouncing between the 200 SMA at the bottom and the 50 SMA at the top
On the H4 chart, the 20 SMA (gray) and the 50 SMA (yellow) were providing solid support for nearly a month when the uptrend had some pace. In the last two weeks, the buying pressure has diminished and the price has slipped below the 50 SMA now, which has turned into resistance. At the bottom, we have the 200 SMA (purple) which is providing support on this time frame chart.
So, LITECOIN is bouncing in a range between two moving averages now and the range is tightening. The momentum is still sort of bullish in the crypto makret, so there’s a strong chancce that it pulls Litecoin up with it, which would maker a breakout of the range. But, if that doesn’t come soon, sellers will gain more confidence. We are long on Litecoin so we’re hoping that the break happens on the upside.