With its having, and some recent FUD behind it, Litecoin (LTC) is still searching for a bottom on its LTC/BTC chart after a small season of significant correction of over 60% from regional highs. Some bullish indicators point to the possibility of some small gains soon; but a larger trend change – back skyward – will need buyers to step up to the plate.
We turn first to the daily LTC/BTC pairing, we see some solid performance on the RSI. Price has been arcing up for a while, and some bull divergences are apparent on a couple of the troughs – although this is not all the way consistent.
Quite simply, time will tell if this is the bottom of LTC’s down movement. Volume, as is common with alts these days, is the problem: it’s not there. The last bull divergency obviously didn’t pan out on the daily, and this one might not either. It seems, however, that LTC should at least process to the top of this range – which could bear some short term profits for sharp traders.
Looking just at the MACD on the daily, we see a picture of consolidation, as well as a bullish cross yesterday. We’ll need a couple of days to say whether this cross arcs up well or fizzles. At any rate, the moving averages are still some way from the centerline; but the growing strength is consistent.
Coming down to the 4-hour, and on the lookout for that small long trade, we see that there is almost 20% of predictable profit versus BTC on the next cycle up to the downtrend line.
Given the growing RSI strength – diverging here as on the daily – this is fairly likely to pan out. The MACD, however, is not quite ready to sign off on this move up: it looks like one more cycle between the MA and signal line is necessary.
Moving to LTC/USD, we see a similar picture. Price is searching for a bottom after a 50% retrace from regional highs of $140. A large bull divergence between now and mid-June suggests a small pop to somewhere between the 21 and 32 EMAs, at the next resistance up.
But again, volume is nowhere present on this chart, especially not for the upside. The consolidation downward in volume does suggest that a breakout may come soon, however.
In all, we see Litecoin’s performance repeated on many altcoin charts. Little volume; consolidation; bottom-finding. Things don’t look bad, and the likelihood of holding here seems high. The breather in the middle of 2019 might be over soon for Litecoin.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
