The Litecoin price has shown considerable recovery since bottoming out in December 2022. LTC appreciated almost 50% in January of this year. Currently, however, the altcoin has seen a price pullback and is consolidating on its daily chart.
Over the past 24 hours, the Litecoin price is down 0.3%, which signifies a range-bound move. The altcoin also lost close to 3% of its market value. The technical outlook for Litecoin was pointing towards bullish momentum as demand for the altcoin remained high on the daily chart.
The accumulation also reflected the same. Price noted a decline as LTC pulled back from the overbought zone. The buyers still have the upper hand on the chart.
A continued drop in accumulation will see bears lock in Litecoin price action. That momentum would continue into the next week, causing LTC to fall below its nearest support level. At the time of writing, LTC was trading 78% below its all-time high set in 2021.
Litecoin Price Analysis: One Day Chart
LTC was trading at $88.11 at the time of writing. The coin has broken through several resistance lines in recent weeks, but has failed to maintain momentum. LTC ran into two stiff resistance levels before it started moving south again.
The two major resistance lines for the coin were located at $90 and $92. Immediate resistance stood at $90. If demand for the altcoin holds steady, then LTC could try to break above the $90 price mark.
On the other hand, the closest support line for Litecoin price stood at $86, and a continued price correction will force LTC to drop below the $86 price mark and settle at $82. of LTC traded in the last session was red, indicating a dip in buyers.
Technical analysis
The altcoin has been hovering in the overbought region for several weeks now, and there is a slight dip in demand for Litecoin right now. The Relative Strength Index dipped a bit below the 60 mark after noting a recent dip that indicates demand was shrinking.
However, a reading near the 60 mark means that buyers have outnumbered sellers. Accordingly, the price of LTC broke above the 20 simple moving average (SMA) line, as the buyers were driving the price momentum in the market.
The coin was also above the 50-SMA (yellow) and 200-SMA (green) lines, indicating further uptrend.
Regarding the buying pressure drop, the LTC chart showed a sell signal on the one-day chart. The moving average convergence divergence (MACD), which represents market momentum, experienced a bearish crossover and formed red signal bars linked to sell signals.
This could also imply that the price will fall in the next few trading sessions. The Parabolic SAR, the indicator that reads the trend and change in price momentum, was still positive. The dotted lines were below the candlesticks, suggesting that LTC price remained positive.
Featured Image from UnSplash, Charts from TradingView.com
