Litecoin, like Bitcoin, hasn’t registered a surge of note over the past week. In fact, the opposite has been the case, with Litecoin’s weekly price change observed to be negative 7.15%. Although not surprising, the same pattern can be seen for the top 15 altcoins [by market cap].
The highest drop can be seen in Cardano, with the alt noting a 14% drop while Chainlink noted a 13% drop over the past week. This article will take a look at the ambiguous nature of Litecoin’s price.
Litecoin 1-week chart
Source: LTCUSD on TradingView
The one-week chart for Litecoin can be split up into 3 parts – pattern, important levels, and bias.
Right now, we are witnessing Litecoin consolidate in a symmetrical triangle. Litecoin has been forming lower highs since 2017 and the same is the case even now. It has also been forming high lows since the same time. So, this multi-year consolidation, whenever it breaks out, will be a sight to witness, and hopefully, it will be a bullish one.
Important levels are as shown on the chart. However, at the time of writing, LTC was well above the $50-level after failing to reach $64. If LTC continues to head lower, then we might see the cryptocurrency test $50 before the breakout.
Additionally, the red line seen on the chart has supported the weekly wicks for the last 3 weeks. Hence, this will prevent the price from heading any lower on the charts.
Moving on to the bias, at the time of writing, the bearish divergence [pink] formed between the price and OBV from early 2020 to mid-2020 was over and there existed no such divergence [yellow] since mid-2020. In fact, the OBV has been forming higher lows, indicating a slow increase in volume. The RSI noted a similar move and suggested a slow increase in bulls, with the momentum being supported by the white line.
Conclusion
Litecoin was picturing a weekly red candle at press time, however, it needs to build more steam for a multi-year breakout. Right now, it is too soon to decide if the price will head higher or lower. However, $50 seems like a level to look out for in the days to come. Moreover, Bitcoin too seemed stuck in a high timeframe pattern which was bearish. Hence, care should be advised to not take any long term trades without proper confirmation or reasoning.