A calm before a thunderstorm? At least it looks like it is the case glancing at the Litecoin price of the daily chart.
It may present a “fantastic” opportunity, but traders are generally cautious.
The smack-down of the past few days has been painful to watch–perhaps leaving an impression for traders.
However, for seasoned crypto traders, LTC/USD and crypto price action was nothing more but “crypto being crypto.”
Litecoin Market Performance
For now, LTC prices are pulling higher, finding tailwinds from New York’s sessions gains of June 22.
Still, the uptrend can be short-lived if Litecoin bulls fail to clear important resistance lines.
These liquidation levels have been consistently capping gains over the past few trading sessions.
As such, any hopes of bear reversal and change of fortune by traders are subject to a conclusive, high-volume reversal ideally above $200.
If anything, such a development would be an astounding, unexpected win for Litecoin buyers earlier concussed by bears.
Even so, there should be no forgetting that Litecoin sellers—despite flashes of strength on June 23—are trading within a bear breakout pattern.
From the daily chart, LTC/USD is beneath a multi-month support level—now resistance. The good news in the short term is the reversal from May 2021 lows.
If there is more demand for LTC, then there would be a clear three-bar bullish reversal pattern. In that case, this builds the buy prerequisite momentum for an up-thrust above the middle BB, thereby rewinding losses of June 21.
Litecoin to Spring from a “double-bottom.”
One trader on Trading View, Wicktator, notes that the LTC/USD price chart aligns to favor bulls.
At the time of writing, the Litecoin price had found support from May 2021 lows and bouncing back strongly, encouragingly with decent trading volumes.
For this reason, he expects Litecoin prices to “spring” higher, launching from May 2021 lows in a resumption of the Q1 2021 bull run.
LTC/USD leg-up to $220
While traders appear to be refining entries, another one on Trading View has everything laid out, confident of Litecoin bulls emerging triumphant.
Sroshberwary_fx has marked out possible reaction points as the analyst anticipates another leg higher towards $220.
Leaning on caution, the LTC/USD upside will be null if there is an expected drop below $100.
Litecoin “Dead Cat Bounce”
This is the same view held by Griffin0318 on Trading View.
Although traders are ecstatic, jumping on pullbacks, the analyst is cautious as he lays out his case analyzing the weekly chart.
Several indicators stand out, canceling the case for another Litecoin run—at least for now.
For instance, LTC/USD prices are trickling down, confirming a three-bar bear formation pattern of early May, evident in the weekly chart. Litecoin bulls now have support above the 200-week moving average. Outside of this, LTC bears have crashed below the 9-, 20-, and 50-week moving average—signaling sell pressure.
Furthermore, the RSI is falling from the overbought zone, moving in lockstep with LTC/USD prices.
Concluding from these indicators, the analyst thinks present gains are nothing but a dead cat bounce. Better loading opportunities, in his assessment, lie below $100.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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