Litecoin stagnates below significant resistance while Bitcoin experiences consistent fluctuations in recent trading sessions, with Litecoin recording a slight 2% increase in the last 24 hours but losing 1% over the course of the week, pointing towards a consolidation. The technical outlook of the altcoin indicates a possible bearish takeover as both demand and accumulation have diminished for the coin. The critical overhead resistance level of Litecoin has been a barrier that the coin has not been able to surpass. In the coming trading sessions, if there is further rejection, bears could successfully take over.
As Bitcoin approaches the $30,000 mark, major altcoins follow a similar price trend. If BTC successfully surpasses this resistance mark, Litecoin could potentially experience a rally, but the market capitalization of LTC has declined in the last 24 hours, hinting at a decrease in buying power.
At the time of writing this article, LTC was trading at $89.58, with the overhead resistance level at $90, which the coin has been attempting to break through in recent weeks. If it manages to surpass this level, it could potentially be traded close to the $100 mark. However, for a recovery to take place, selling pressure must wane. On the other hand, if LTC falls from the $89 mark, it could reach $88, and failing to stay above this level could cause the price to fall to $84. The latest trading session showed a red traded LTC volume, indicating that sellers dominated the market.
Following a high bearish engulfing candlestick formation, LTC’s price has steadily declined, with demand also decreasing. The Relative Strength Index (RSI) remains below the 50 mark, indicating that there is more selling pressure than buying power. Moreover, LTC has fallen below the 20 Simple Moving Average (SMA) line, indicating that sellers are driving price momentum. However, the price has moved above the 50 SMA line (yellow), indicating that LTC could attempt to recover in the next trading session.
In line with other indicators, LTC has shown selling signals in connection with negative price movements. The Moving Average Convergence Divergence (MACD), which indicates price momentum and reversals, has continued to form red histograms, signaling sellers to come to the table. The Directional Movement Index was also negative, with the +DI line (blue) below the -DI line (orange). Additionally, the Average Directional Index has fallen below the 20 mark, indicating that the current price trend lacks strength. However, with increasing demand and broader market strength, LTC may be able to break through its overhead resistance level in the coming trading sessions.
