Litecoin Fares Better Than Bitcoin During Crypto Sector Pull Back

Litecoin (CRYPTO: LTC) was faring slightly better on Thursday than Bitcoin (CRYPTO: BTC), with the latter trading down about 5% under the Wednesday low of $63,525.

Although Litecoin was trading about 4% lower in sympathy with Bitcoin, the crypto looked to be digesting Wednesday’s bullish increase of almost 10%.

The Litecoin Chart: Litecoin created a bullish double bottom pattern on Sept. 28 and Sept. 29 and reversed into a consistent uptrend on the daily chart. The crypto has since put in a series of higher highs and higher lows with the last higher low sitting at $176.40 and the most recent higher high printed on Thursday at the $214.80 mark.

Litecoin was in need of consolidation to drop its relative strength index (RSI), which was measuring at 70% on Wednesday. When a stock or crypto’s RSI nears or exceeds the 70% level it becomes overbought, which is a sell signal for technical traders. Litecoin may need further consolidation on the daily chart to drop its RSI to a more comfortable level near 60%.

The higher-than-average volume in Litecoin indicates there is a high level of trader and investor interest in the crypto. On Thursday afternoon, Litecoin’s volume was nearing 400,000, compared to the average 10-day volume of 344,097. If Litecoin consolidates further bullish traders would like to see declining volume.

Litecoin is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 200-day simple moving average, which indicates overall sentiment is bullish.

Bulls want to see continued consolidation on lower volume and then for big bullish volume to come in and push Litecoin up to make a higher high. There is resistance above at $208.23 and $232.41.

Bears want to see continued big bearish volume drop Litecoin down below $193.80. If the crypto can’t hold the level as support it could fall toward the $162.93 mark.

Photo: Elvind Pedersen via Pixabay

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