Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
Bitcoin [BTC] was in a position to rise previous the $20.7k resistance stage however confronted extra promoting stress above the $22k mark. At press time, the king of crypto was buying and selling at $21.5k. The transfer upward from the $19k space over the previous week noticed Litecoin [LTC] climb meekly from $48 to $52. Nevertheless, regardless of the robust battle to reclaim the $50 space, an uptrend was not but established.
LTC- 6-Hour Chart
In late Could, Litecoin established a spread from $60 to $74. In early June, the value fell sharply beneath this vary. The swing excessive and low of this transfer have been used to plot the Fibonacci retracement ranges (yellow) on the value chart.
Normally, 61.8%-78.6% retracement space affords stiff resistance. The 38.2% retracement stage can be key, as the value usually retests this stage as assist earlier than transferring upward to the 61.8% stage.
For Litecoin, it may be seen that the 38.2% stage has acted as a stable resistance space over the previous two weeks. Subsequently, shopping for alternatives would possible not arrive till the $53 stage was flipped to assist.
On decrease timeframes, the $50-$52 zone was necessary, and LTC bulls continued to battle to determine dominion over this belt.
Rationale
Regardless of their robust battle, the indications confirmed that the patrons had not made a lot progress. The Relative Power Index (RSI) didn’t present a development in progress, regardless that it was above impartial 50. In actual fact, it has oscillated between 60 and 40 for the higher a part of the previous month. This hinted at a spread greater than a powerful development behind Litecoin.
The On-Steadiness Quantity (OBV) was additionally transferring sideways over the previous month, and we will infer that purchasing stress has considerably died out in current weeks. The Chaikin Cash Movement (CMF) agreed with this inference, because it has didn’t climb previous +0.05 up to now three weeks of buying and selling.
Conclusion
Litecoin managed to halt its plunge at $48, and likewise climb previous the $50 mark. But, it was not enough proof to level towards a transfer greater for LTC. The $53 stage was essential. A flip of this stage to assist can provide a shopping for alternative focusing on $61.