Litecoin (CRYPTO: LTC) is trading slightly lower Thursday as it looks like it is cooling off after recently bouncing off a key support level. The crypto is trading in a sideways channel and has been pushing higher toward support over the past few days.
The crypto market as a whole is slightly dipping today after having a strong green day yesterday.
Litecoin was down 3.06% at $136.06 Thursday afternoon at publication.
See Related: Is Litecoin Due For A Reversal Soon?
Litecoin Daily Chart Analysis
- Litecoin looks to have found a bottom after being able to hold the $100 level as support and bouncing back higher. If the crypto can form higher lows it may be able to push up and test the $200 level that has held as resistance multiple times in the past.
- The crypto trades above the 50-day moving average (green) but trades below the 200-day moving average (blue), indicating the crypto is now trading in a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may act as resistance.
- The Relative Strength Index (RSI) has been climbing throughout the past couple of weeks and now sits at 58. The cross above the middle line shows there is now more buying pressure than there is selling pressure in the crypto. If the RSI continues to rise it may reach the overbought range soon and have many more buyers than sellers.
What’s Next For Litecoin?
Litecoin looks to be reversing after holding the support level and beginning to climb back higher again. This may be confirmed if the crypto can form higher lows and see a higher low trendline form. Bullish traders want this trendline to form and the crypto cross above the 200-day moving average. Bearish traders want the crypto to start to dip back lower and form lower highs. Bears want Litecoin to dip below the $100 level and begin to hold as a resistance level for the crypto to possibly see a strong bearish move in the future.
