After Holding Support, Litecoin Appears to Be Bouncing Back

After Holding Support, Litecoin Appears to Be Bouncing Back

After a huge surge to over $300, Litecoin (CRYPTO: LTC) has been cooling off over the past week or two. The crypto market is pushing higher on Tuesday, as is the case with the rest of the cryptocurrency sector. Litecoin appears to be recovering from its last resistance level.

At the time of publication, Litecoin was up 3.21 percent to $215.02.

Analysis of the Litecoin Charts daily

Litecoin recently broke through resistance in an ascending triangle pattern, according to technical experts, and now appears to be holding the previous barrier level as support.

Before the break, the $200 level served as resistance, but it now appears to be acting as support. If this area holds as support, the coin could soon resume its upward path. If the higher low trendline fails to hold, the next point of support could be the higher low trendline.
The coin is trading above both the 50-day and 200-day moving averages (green and blue, respectively), indicating bullish sentiment.
Each of these moving averages could serve as a future support level.

The Relative Strength Index (RSI) appears to be consolidating near the middle of the range, with a reading of 48. This indicates that the market is under a little more selling pressure, yet the purchasing and selling pressures appear to be almost equal at the centerline.

What Does the Future Hold for Litecoin?

Bullish traders are hopeful that the cryptocurrency would bounce off the $200 mark and not fall below it. Bulls must maintain a hold above the $200 mark to witness more bullish action in the cryptocurrency. Bulls are anticipating the formation of higher lows.

Bearish traders are betting that the $200 level will not hold as support and that the cryptocurrency will continue to decline. Bears want to see the price fall to the higher low trendline and then be able to break through it. This could indicate a long-term trend shift on the way, as well as the start of a longer-term bearish trend.

Litecoin (LTC) is an open-source cryptocurrency and software project released under the MIT/X11 license. Starting in October 2011, Litecoin was an early bitcoin offshoot or altcoin. Litecoin is essentially comparable to Bitcoin in terms of technical specifications.

By 2011, GPUs were mostly used to mine Bitcoin. Some people were concerned that mining had become too difficult to enter, and that CPU resources were becoming antiquated and useless for mining. Tenebrix is a new alternative currency that was constructed using Bitcoin programming (TBX).

Tenebrix swapped out the SHA-256 rounds in Bitcoin’s mining algorithm for the script function, which was created in 2009 to be difficult to accelerate with FPGA or ASIC devices. Tenebrix would therefore be “GPU-resistant,” allowing it to take advantage of bitcoin miners’ CPU resources. Tenebrix was a fork of an earlier cryptocurrency, Tenebrix, which replaced Bitcoin’s issuance schedule with a fixed block reward (thus creating an unlimited money supply).

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.