After nearly two months of retracing from a volatile double-top H1 season, Litecoin (LTC) is showing tepid support on its BTC trading pair. With the halving days away, it is too early to call a bottom to the corrective period.
We’ll first look at the monthly chart, given the important monthly candle close that came yesterday. July closed with strong buy support on a long wick down, with a very small wick up. Volume, mostly sell volume but with plenty of buy support, was smaller by a decent margin that June or May’s, indicating that most of the sellers have exited this market.
The leading altcoin is now sitting at very solid support, derived from levels on the weekly chart – see below.
Price action on the weekly looks interesting. A tweezer bottom right within historically significant support presents the possibility of a bottom – although, the close was very weak and nowhere near the previous candle’s body.
Price reversed there into a shallow uptrend, but volume on the weekly looks very lacking so far.
On the 3-day, we don’t really find any stronger or dramatic signs of strength; but rather, steady and modest strength building.
RSI here is in an uptrend, with higher highs and lows on the recent leg. On the histogram, a non-parabolic uptrend (it’s flat) signals modest growth in strength, as we said. The volume situation, again, is the culprit for lack of greater strength.
Zooming way in to the 4-hour chart, we take a look at short term trading prospects. Here, we see some interesting patterns.
A likely rising triangle pattern is evident, and volume seems to be clearly breaking out on the Binance exchange. The moving averages have been left behind, and Litecoin looks ready to break topside resistance for a leg up.
Taking all of this together, it seems that Litecoin may be consolidating near or even at its bottom. Another trip down to the bottom of this support band, perhaps for a double bottom with more strength, would help the leading altcoin turn its chart around and begin outperforming Bitcoin again. In the short term, a trade opportunity may be presenting itself.
Things have historically become volatile during halving events, for both Litecoin and Bitcoin, as the mining ecosystem is forced to adjust to a new economy. So things may get very choppy for short term trading.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
