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Litecoin Price has been ranging between $3.20 and $3.70 since last Thursday, which reflects the low volatility of the market currently, as opposed to the high volatility we witnessed during the last week of October. Litecoin price printed $3.4 at the time of writing of this analysis and signs of an upcoming uptrend started to emerge.
5 Bullish Candles on the 1 Hour Charts:
By analyzing the (LTC/USD) 1 hour charts from Bitfinex (look at the below chart), keeping the Fibonacci resistance fan we plotted on last Thursday’s analysis and plotting the 20, 50 and 100 EMAs; we can conclude the following:
- We can now spot a new price correction downside trend line (the red trend line on the below chart), which is of a less steeper slope when compared to the trend line we spotted on Thursday’s chart. The rate of fall of litecoin price dropped which led to a “psuedo” side-ways movement on the 1 hour charts, which reflects indecisiveness of the market near $3.45 which corresponds to the 25% Fibonacci retracement level.
- Today’s trading sessions had relatively high buying volumes which led to formation of 5 successive bullish green candlesticks that pushed litecoin price above the 20 and 50 EMAs which means that a further rise is likely to happen, especially if we can see the price jump above the 100 EMA within the next few hours.
- If the buying power of the market continue to steadily grow stronger, we can see dramatic increases as the price will face considerable resistance at around $4.20 which corresponds to the 25% Fib resistance fan level.
1 Day Charts Show No Signal of Downtrend Reversal:
The 1 day (LTC/USD) charts from Bitfinex, show the following (look at the below chart):
- The MACD indicator value is in the positive zone but it is advised to hold on investing in long positions until we can see the blue positive trend line cross above the red negative trend line.
- The RSI shows no signs of reversal of the current downside trend.
Conclusion:
Although the one hour charts have started to exhibit signs of reversal of the short termed down trend, the MACD indicator on the 1 day charts is still unfavorable of an upcoming uptrend. It is advised to hold back on investing in long positions until reversal of the downtrend is confirmed.
Charts from Bitfinex; hosted by Tradingview.com
