Sunday, 24 May 2020

Litecoin readies for recovery near $50-level despite hurdles

By Chayanika Deka

 

 

The seventh-largest cryptocurrency, Litecoin has been struggling to get hold of bullish price action as it faced rejection from the psychological level of resistance at $50. Despite a slow up upside momentum, the silver coin could finally be heading towards a recovery in the short-term.




LTC’s price candles oscillated between a descending channel pattern. On completion of this pattern, a potential bullish breakout was predicted. A positive price trend for the coin was also depicted by the placement of the daily moving averages.

Following the massive crash in the second week of March, the moving averages sustained a bearish crossover with the 50 DMA [Pink] sliding under the 100 DMA [Purple] on 1st March. The gauge between the two rose over a period of time indicating the bearish presence in the coin’s price.

This trend, however, noted a reversal at the beginning of May following which the 50 DMA continued to climb in an upward direction and the 100 DMA falling below while resisting the LTC price candles. Subsequently, the gauge lowered. The above chart depicted a potential bullish crossover by the two daily moving averages in the near-term.

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