Litecoin Spikes 30%, Retreats: A Technical Look
Litecoin (CRYPTO: LTC) saw a large spike of over 30% earlier Monday morning, but has since fallen in the wake of a fake report stating that Walmart Inc. (NYSE:WMT) had partnered with the cryptocurrency and would start accepting payments in Litecoin. Charlie Lee, the creator of Litecoin, as well a spokesperson from Walmart, said the press release in question was fake.
Litecoin was trading near-flat at $181.89 early Monday evening.
Litecoin Daily Chart Analysis
- Litecoin continues to stay above the higher low trendline despite trading red on the day. It continues to form what technical traders call an ascending triangle pattern.
- The $200 level has been an area Litecoin’s price has been unable to hold above for long. The higher low trendline has been an area where the price has been able to find support and stay above; it may continue to hold in the future.
- The crypto trades above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the crypto is likely in a period of consolidation.
- The crypto may find support near the 50-day moving average, while the 200-day moving average could hold as resistance.
- The Relative Strength Index (RSI) has been moving sideways above the middle line the past few weeks and now sits at 50. This means the buying and selling pressure is equal and the stock is likely not seeing much movement.
What’s Next For Litecoin?
Bullish traders are looking to see Litecoin hold above the higher low trendline until it breaks above the $200 resistance level. A break above the $200 level with some consolidation could let Litecoin continue on its bullish run and move upward.
Bearish traders would like to see Litecoin break below the higher low trendline and start to fall lower. Bears are looking to see the price fall below the 50-day moving average for sentiment to turn more bearish, as it also breaks the uptrend.
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