Litecoin is in a Sideways Move, Poises for a Fresh Uptrend

Litecoin is in a Sideways Move, Poises for a Fresh Uptrend

August 24, 2021

The price of Litecoin (LTC) has been struggling to break above the $189 resistance level for some time now. The price tussle has been going on. Buyers are eager to break the resistance.

As a result, the price action is forming small candlesticks called Doji and Spinning tops. These candlesticks describe that buyers and sellers are undecided about the direction of the market. However, when the small body candlesticks consolidate near a resistance level, it is likely that the LTC price will make a breakout. Traders believe that consolidation near a resistance level increases the chances of a breakout. On the upside, LTC/USD will rise to $240 if a breakout occurs. Meanwhile, LTC price is at $186.67 level at the time of writing.

Litecoin indicator analysis

The LTC/USD price is above the 21-day and 50-day SMAs, indicating that the uptrend is continuing. The LTC price is at level 64 on the Relative Strength Index for period 14, indicating that the market is in an uptrend zone and is capable of moving higher. The moving averages are pointing upwards, indicating the uptrend.

Technical indicators:

Major Resistance Levels – $500 and $540

Major Support Levels – $180 and $140

What is the next move for Litecoin?

LTC/USD is likely to resume its uptrend as the altcoin trades in the bullish trend zone. Meanwhile, the uptrend from August 16 has tested the 61.8% Fibonacci retracement level with a retraced candle. The retracement suggests that LTC will rise to the 1.618 Fibonacci extension level or the $220.99 level. From the price action, LTC prices are fluctuating below the resistance level.                             

Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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