After trading in different directions, cryptocurrencies started to turn bullish early last week and the entire market was making some decent gains. But the second half of the week turned mostly bearish and the cohesion in the crypto market was lost. Some cryptos retreated lower while some others like Litecoin held the ground. Now, things are starting to move again, so let’s have a look at how Litecoin is doing.
Litecoin Price Analysis – LTC/UD Daily Chart
Litecoin held the gains last week, while most of the market retreated lower
Looking at the daily chart above, we see that Litecoin was trading in a range below the 200 SMA (purple), which was acting as resistance on this timeframe. It tried to move above that moving average a couple of times, but the buying pressure was not strong enough to keep the price up there.
The bullish move toward the end of October was not too strong but was consistent and buyers held the gains. The 20 SMA (gray) turned into support eventually and early last week LTC/USD surged from $200 to almost $300. It formed a doji candlestick up there, which is a bearish reversing signal after the bullish move, but there was no retreat to follow the doji, which shows strength in Litecoin. Over the weekend this cryptocurrency formed two bullish candlesticks so perhaps the bullish momentum is resuming again.
Litecoin Price Analysis – LTC/UD H4 Chart
LTC reversed higher as soon as the 50 SMA caught up
On the H4 chart, we see that Litecoin moved above moving averages in October, which turned into support, and then the surge came last week. The 20 SMA turned into support for some time, but it was eventually broken, but buyers started jumping in once the 50 SMA (yellow) approached, which shows strength once again, but they will have to push above last week’s high for the bullish trend to resume properly.
The price action in Litecoin used to be really boring, especially as other cryptocurrencies were making some decent gains last month, while now it has become one of the interesting cryptos regarding the price action. The partnership with Visa which brought the Litecoin Visa debit card has increased the transactions and the Commonwealth Bank of Australia is also offering users the ability to buy, sell and hold LTC now. So, things are moving in the right direction for Litecoin and the uptrend seems to be resuming again.