The Litecoin (LTC) value continues to surge following a powerful run over the previous month — however is it ripe for a pullback? Let’s have a look.
Fibonacci Retracement
If we check out the Fibonacci retracement software and draw a easy line from the all-time excessive to its most up-to-date backside, we will see that the value of Litecoin (LTC) towards Bitcoin (BTC) has largely revered every channel whereas stair-stepping upwards.
After bursting via 0.011 BTC and consolidating the yellow channel, Litecoin subsequently burst via 0.014 BTC. Right now, the value of ‘silver to Bitcoin’s gold’ bounced off what’s going to likely present some critical resistance — 0.016 BTC. This stage acted as earlier help from April to mid-June 2018. Realizing that previous help steadily turns into resistance, it stands to cause that LTC can have bother breaking via this stage with out additional consolidation and a wholesome pullback.
Relative Energy Indexes
The every day relative energy index (RSI) has as soon as once more entered the overbought territory, which alerts that the value of Litecoin (LTC) might have to chill off.
Extra alarming, nevertheless, is the extreme bearish divergence which continues to rear its ugly head. As you’ll be able to see within the above chart, the value of Litecoin continues to rise and put in greater highs whereas the RSI continues to say no. That is usually a bearish sign that the value must appropriate itself and now looks as if a ripe time for Litecoin to expertise a significant profit-taking occasion because it runs up towards a major stage of previous help.
Assist Ranges
Ought to Litecoin (LTC) expertise a pullback within the close to future, there are important ranges of help beneath that ought to stop a large decline.
The exponential shifting common (EMA) ribbon, for instance, stands to supply the primary traces of protection towards the bears. These traces would probably match the Fibonacci stage between 0.0135 and 0.014 BTC.
Within the occasion of a significant profit-taking occasion and a large crimson candle, the 200-week shifting common (blue line) can be the final line of protection. An in depth beneath that stage can be downright catastrophic — however that’s at the moment unlikely and never value fretting over.
The views and opinions of the author shouldn’t be misconstrued as monetary recommendation. For disclosure, the author holds Bitcoin on the time of writing.
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Photos courtesy of TradingView.
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