Litecoin LTC/USD was faring slightly better on Thursday than Bitcoin BTC/USD, with the latter trading down about 5% under the Wednesday low of $63,525.
Although Litecoin was trading about 4% lower in sympathy with Bitcoin, the crypto looked to be digesting Wednesday’s bullish increase of almost 10%.
See Also: Bitcoin Flash Crashes To $8,000 On Binance.US
The Litecoin Chart: Litecoin created a bullish double bottom pattern on Sept. 28 and Sept. 29 and reversed into a consistent uptrend on the daily chart. The crypto has since put in a series of higher highs and higher lows with the last higher low sitting at $176.40 and the most recent higher high printed on Thursday at the $214.80 mark.
Litecoin was in need of consolidation to drop its relative strength index (RSI), which was measuring at 70% on Wednesday. When a stock or crypto’s RSI nears or exceeds the 70% level it becomes overbought, which is a sell signal for technical traders. Litecoin may need further consolidation on the daily chart to drop its RSI to a more comfortable level near 60%.
The higher-than-average volume in Litecoin indicates there is a high level of trader and investor interest in the crypto. On Thursday afternoon, Litecoin’s volume was nearing 400,000, compared to the average 10-day volume of 344,097. If Litecoin consolidates further bullish traders would like to see declining volume.
Litecoin is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 200-day simple moving average, which indicates overall sentiment is bullish.
Photo: Elvind Pedersen via Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
