After the FTX crash on November 9, the Litecoin price started a significant bullish move. Investors continue to benefit. However, a recession could be on the way. This might not necessarily be the end of the bulls just yet.
Although LTC is moving south after recording a 7.1% drop on the daily chart, against weekly gains, Litecoin price has held onto its 16% appreciation. The bears have now entered the market and stopped the uptrend.
A break above the immediate resistance mark during the next trading session will stop the bears again. On the daily chart, the Litecoin price has formed a bearish divergence. This often indicates an incoming sell-off in the market. With the buyers continuing to dominate the sellers on the chart, it should not be difficult to recover from the selloff. A move above the $75 mark can also spur another rally.
Litecoin Price Analysis: One Day Chart
LTC was bidding for $71 at press time. Over the past 24 hours, LTC showed that its week-long bullish momentum was waning. The coin’s immediate resistance stood at $73. If the buyers remain present, the coin could revisit the aforementioned level.
Whether LTC can sustain above $73 remains to be seen. On the other hand, a drop from the $73 price can drag the altcoin down to $65. With investors still bullish on LTC, the recovery should be quick. In that case, Litecoin may drop to $61 and then $58. A quick recovery could push the altcoin price to $93, and then LTC could reach the psychological price top of $100.
LTC’s technical outlook has remained upbeat and has yet to capture the recent bearish sentiments. LTC, however, has formed a bearish divergence on the chart. The bearish divergence is followed by a sell-off. The Relative Strength Index noted a dip and was below the 60 mark, indicating that buyers are dwindling in number but still outnumber sellers.
Litecoin price was above the 20 SMA as the coin remains profitable. Buyers were driving the price momentum. This also signaled that Litecoin should be able to recover soon in the event of a sell-off.
Litecoin indicators showed the same outlook in correspondence with more buyers than sellers. Chaikin’s money flow, which indicates capital inflows, was above the midline, which meant investors were hoarding the altcoin.
The average directional index also sided with the buyers; represents the strength of the price impulse. ADX was slightly above the 20 mark, which meant that price momentum was gaining steam at the time of writing.
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