The cryptocurrency market has been playing tag with the bulls and bears over the past couple of days. The market has been bouncing between the immediate highs and lows, and this is visible in the altcoin market of Litecoin.
At the time of press, LTC was on an upwards trend that pushed its value 16% in two days from $187.71 to $218. However, there was some retracement visible resulting in LTC trading at $210.40.
Litecoin 4-hour chart
Source: LTCUSD on TradingView
The above chart indicated that the price of LTC was noting a gradual fall until recently, giving the bears an upper hand. However, as the momentum in the market shifted, the price began to retrace and then saw a sudden surge that also replaced the bears with the bulls.
The current price was built within an ascending channel, however, the breakout of the trend could be lower on the price scale.
Reasoning
The volatility has increased in the market and this was indicated by the divergence of the Bollinger Bands. The growing volatility could act as a double-edged sword for the LTC value, as the selling pressure was also rising. The breakout from the trend could push the price of LTC towards the support at $200.
While the relative strength index has been noting that the digital asset has moved from the equilibrium towards the overbought zone. Nevertheless, the selling pressure that was visible at the time of press, has pushed LTC under the overbought zone. This could be an attempt for the asset to stabilize its value. Meanwhile, the momentum has remained extremely bullish and has not shown to switch to a bearish side yet.
Important levels to watch out for
Entry-level: $211
Take Profit: $200.91
Stop-level: $215.42
Risk and Reward: 1.36
Conclusion
The current LTC market has been indicating an overly bullish market which might switch sides with bears if the selling pressure increases. The ascending channel trend is awaiting breakout and given the extreme bullishness in the market, a correction may send the price back to support at $200.