Litecoin experienced 24hr gains of nearly 3% today as the litecoin price peaked near the $1.80 level. The recent movements are coming after some prolonged negativity in the bitcoin market. Negativity that seems to be coming to an end now that strong buying pressure is pushing charts upwards again.
It’s all in the volume
The litecoin price is currently experiencing gains even greater than bitcoin price has in the last few days. Comparing LTC/USD with BTC/USD yesterday, it was visible that the litecoin market wasn’t as bearish as bitcoin. According to coinmarketcap.com, litecoin volume is now nearing $2m which is a massive increase when compared to yesterday’s $820k volume. There are signs indicating that this could be a great foundation for the next bullish rally.
The fact that the volume is back at normal levels could logically indicate that the recent upward movements of litecoin price were here to stay. However, the effects of profit taking are expected to be experienced soon.
Strong buying pressure pushing litecoin price up, for how long?
There’s no doubt that the sudden price rise is a result of large buy orders. As the 15-hour chart above indicates, litecoin price managed to rise from a $1.66 low up to $1.79. The response to the peak price wasn’t followed by any more large orders though. Profit taking is currently causing litecoin price to trade back at $1.75 levels. The recent spike happened after some solid buying pressure though. There’s no reason to deny that the price could climb back up again soon.
As seen in the 3-hour chart, profit taking is already taking effect. After the peak level was reached the price fell below $1.75, but was pushed back up by the buying pressure again.
Charts from Bitfinex