Litecoin’s Close This Week Could Set The Tone For The Next Significant Move In Prices
Litecoin (LTC)’s close this week has the ability to set the tone for the next significant move in prices, according to the technical charts.
Litecoin saw moves both ways during the course of the past week. The prices hit lows and highs of $72.58 and $84.24 before closing on Sunday on a flat note at $80.
This was a sign of indecision in the market and Litecoin is left at the mercy of the price action.
This could mean a bullish move that could surge above the last week’s high, and it could entice bargain hunters and trigger a price rally.
There’s another possibility as well because if LTC finds acceptance below $72.58, more investors will probably decide to liquidate their holdings and this would trigger another round of sell-off.
Currently, LTC is trading at on CoinMarketCap at $88.13.
A scenario exciting to the bulls
It’s worth noting that a doji candle usually represents indecision and when it’s viewed against the backdrop of the sell-off from its record high of $369, the doji could mean bearish exhaustion.
If LTC closes above $82.24 this week this would confirm a bullish doji reversal and even if this scenario does sound exciting to the bulls, they should keep in mind that that the 5-week and 10-week moving averages (MA) are still under the bearish trend.
More than that, the relative strength index (RSI) is in bearish territory, and it’s still below 50.00.
It’s worth noting that the long-term outlook remains bearish while LTC is trading below the 50-week moving average.
A weekly close below $72.58 which was last week’s doji candle low, would definitely show a continuation of the sell-off from the April high of $183.00.
This would also shift risk in favor of a drop to the psychological support of $50. We’ll just have to wait and see where things are heading to this week and what happens to the price of LTC.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.