Like most of its counterparts, Litecoin noted an increase in value on the back of Bitcoin’s push above $50k. The alt, which traditionally shares a powerful correlation with the king coin, lined up seven straight inexperienced candles on the 4-hour timeframe. This was last seen in late May after Litecoin rallied from a near 4-month low.
Nevertheless, a resistance zone appeared to have the potential to set off the subsequent market decline. LTC needs to close above this zone to keep its trajectory intact. On the time of writing, LTC was buying and selling at $182.6, up by 4% over the past 24 hours.
Litecoin 1-hour Chart
On the hourly chart, some selling pressure was trickling into the market as LTC approached the key resistance zone of $185-$190. In truth, this resistance was energetic all through mid-August, usually triggering a sell-off. Hence, there was a high possibility of another drawdown, one which could extend to some severe losses going forward. In such a case, the main target would shift to the help space between $176-$178.
To overcome a bearish outlook, LTC would need to close above $190 backed by healthy volumes. This is able to restrict the probabilities of a false breakout as effectively. Levels such as $200 and $210 would then come into play.
Reasoning
LTC’s indicators have been buying and selling in bullish positions, however highlighted receding bullish power. This was evident on the RSI which threatened to switch to a downtrend if it punctured through its lower ascending trendline.
In accordance with the Squeeze Momentum Indicator, consumers have been steadily operating out of steam because the index shaped decrease peaks. Finally, the hourly MACD also registered a bearish crossover as sellers attempted to capture near-term market control.
Conclusion
LTC’s uptrend might be anticipated to be restricted between the sturdy resistance zone of $185-$190. The indicators suggested that sellers have been laying the foundations for an upcoming retracement, in which case the focus would shift to $176-$178.
That is why consumers should not take a breather over the approaching classes. A close above $192 on strong volumes would negate the chances of a bearish outcome.
