Major altcoins have, of late, been stepping into the void of a quiet market, as Bitcoin (BTC) is mostly going sideways at the end of a long consolidation period. Litecoin (LTC) is one of these newly animated altcoins, and we are starting to see some gains and – again, like other major alts – a possible reversal from the lows.
Starting on the weekly candle which closed a day or so ago, we see a rather weird looking double doji candle formation. The candle closing on September 8 had a deep buy wick showing strong support, which did not quite translate into a reversal candle for last week’s close. Volume did not even increase for the week; but we can see a clear if slight uptick on the histogram.
This week is already going notably better, with a bullish candle already engulfing the local structure and histogram ticking up hard. But it’s far too early to consider the next candle close, in about five days.
Moving to the daily, we see that price is poised to break above the main inflection point of the local market, with bullish indicators in tow. The 21 exponential moving average (EMA) was lost a few days ago, but retaken yesterday on decent volume (Bittrex).
Higher highs and lows on the RSI are plainly telegraphing health, and the histogram looks ready to close the day with its own higher high. We might expect a breakout to test the 55 EMA (purple) about 8% up from the current price.
Finally, moving to the 12-hour USD pairing, we see that an ascending triangle formation is just about to be broken out of. The last candle has closed above the 55 EMA for the first time in this market cycle, and after consolidation above here we might see a strong leg up – if the volume shows up.
There are no two ways about it: Litecoin looks well set up for some gains. And considering that we have already seen an almost identical scenario play out for Ethereum in the last week, it is very likely that Litecoin will follow a similar path amid this period falling Bitcoin dominance.
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