Litecoin [LTC] Technical Analysis: Prospect of a bullish run promises some cheer

Litecoin [LTC], the cryptocurrency that was developed to be the silver to the Bitcoin’s gold, has taken a beating since the heights of last year. However, there is reason to cheer for those interested in LTC as the coin is now the seventh in the list of world’s largest cryptocurrencies and has seen a good growth rate of 3.33% over the past 24 hours, at the time of writing.

The market capitalization at the time of press is holding at $1.967 billion while the trading volume over the past 24 hours has been valued at $617 million. Here, ZB.com has contributed to almost 9% of the trade with LTC/USDT being the most popular trading pair.

1 – hour

The 1-hour graph indicates a small downtrend taking shape as it currently extends from $33.255 to $32.939. This comes after a short burst of uptrend the trading market saw that lasted from $32.099 to $33.308. The resistance point holds firm at $33.505 while the support point may be overhauled if the downtrend continues. It presently stands at $32.699.

The Bollinger Bands are neither expanding or contracting, indicating that any volatility has been stabilized and that any price movement will be merely sideways in the range of $32.50  and $33.50.

The Aroon indicator has the Aroon Down Line over the Aroon Up Line, indicating that the market has taken a bearish turn.

The Awesome Oscillator indicates that the market is taking a gradual spiral downwards and that the mood is presently bearish. However, the AO line is yet to cross the mark of 0, indicating that this may be temporary.

1 – day

The longer term, the 1-day graph suggests that an uptrend is in motion, one that extends from $24.082 to $30.993. That being said, it’s still significantly short of overhauling the last downtrend that extended from $54.340 to $23.270. Both the resistance and support points are holding steady at $40.169 and $28.683, and are not likely to be breached in the near future owing to a lot of sideways price movement.

The Parabolic SAR presents a steeping curve that ends on top of the final few candlesticks. This finding indicates that bearish momentum is stalling and that a bullish run may be in the offing.

The Chaikin Money Flow has the reading line just below the point of zero, indicating that despite the good signs, investors remain on the fence about purchasing LTC and some may be in fact, selling them too.

The MACD line reading suggests that the bulls have recouped well since the bearish crossover. In fact, the line is just creeping above the signal line, supporting the finding of the histogram which suggests a bullish run may be seen soon.

Conclusion

The short term indicators such as the Bollinger Bands, Aroon and AO all suggest that the market is in for a bearish turn downwards. However, the long term chart should give some reason to cheer as its indicators such as the SAR, Chaikin Money Flow and MACD suggest that a bullish run may be in the offing soon. Whether this has to do with Litecoin’s new logo is difficult to say. Also, whether such a run will stall the sideways price movement in the market is yet to be seen too.