Litecoin bulls look to be dragging LTC/USD higher despite the halving event on 5th August. Looking at the price action on the 60-minute chart there has been some consolidation of prices as traders are holding the price in and around the 90.000 level. The Relative Strength Indicator (RSI) is also showing signs of a break higher as a trendline has been broken and momentum could take it toward or above the 50 mid-line.
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How much of this is general crypto strength? Below is the daily chart for LTC/BTC. This chart shows that LTC is not the most favorable cryptocurrency at this present moment and it maybe general crypto strength that is holding LTC/USD up right now. The RSI indicator is moving back to the oversold area and is currently at 33. On this particular chart I have plotted the overbought and oversold levels at 80 and 20 versus the traditional 70 and 30. This is because if you look over the lifespan of the chart you can see when the price reaches the extremes it seems to bounce harder.
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This means that if BTC and cryptocurrencies take a hit Litecoin may be one of the underperformers. In addition to this, once the 0.880000 level was broken this opened the pair to levels on the downside. The next support level comes at December 12th low between the 0.006890 – 0.007000 area which was a significant low. On the daily candlestick chart yesterday’s Marabozu close looks pretty definitive and indicates further pain.
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