Litecoin short-term Price Analysis: 7 October
Disclaimer: The following analysis attempts to analyze the emerging patterns in the Litecoin short-term market and its impact on price.
The Litecoin short-term market saw a momentary pump of 5.37% in an hour increasing its value from $45.67 to $48.131. However, the digital silver could not hold onto this value as large selling pressure emerged in the market from the next hour. This pressure was quick to dismiss the gains from the pump and pushed the value of LTC to $45.03.
After witnessing the dump, the market stabilized as LTC settled at $45.92.
The peak followed by a correction gave rise to a strong descending channel with the sloping line marking the lower lows and the horizontal line at $45.46 acting as a support. The tremendous price swing also caused the volatility to rise and at press time, the diverged Bollinger Bands suggest there was more action to be witnessed in the LTC market as volatility remained high.
As the price once again consolidated between $45.46 and $46.48, the bears had taken over, as the signal line hovered over the candlesticks. However, the asset had reached equilibrium after entering the overbought zone during the pump but had retracted due to the sell-off.
While the 50 moving average also indicated a low price of the digital asset, the MACD indicator was on the verge of a crossover. The indicator was also signaling bearish news for LTC. The MACD line was at a crossover point with the signal line and the bars have already shrunk, this was an indicator for a trend change.
Litecoin’s price may witness a trend change but the value will have to rise above 0 and only the tall, green bars may indicate an impact of this trend change in the value of the digital asset. The immediate price points LTC will have to surpass will be at $46.48 and $46.99, to break out of the long consolidating phase.