Litecoin price analysis: Bearish correction on the horizon as relative strength index creeps into the overbought zone
- LTC/USD is up from $132.65 to $135.50 during the early hours of Saturday.
- Immediate resistance lies at $138.50, which the bulls need to overcome.
In the early hours of Saturday, LTC/USD has gone up from $132.65 to $135.50 going up by 2.26%. This follows a bullish Friday, wherein its price went up from $130 to $132.25. LTC/USD bulls face critical resistance at $138.50. If they can gather enough steam to go past that level, then LTC/USD may even go up to $142.50. This will be hugely significant if the bulls can do that because the last time LTC/USD was priced around that range was back in May 2018. However, technical analysis shows us that bearish correction may be on the horizon.
LTC/USD daily chart
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The price is trending near the upper curve of the 20-day Bollinger band. The price is still trending above the 20-day simple moving average (SMA 20), SMA 50 and SMA 200 curves. The market has found support on the upward trending line.
Down in the relative strength index (RSI) indicator, the curve has crept into the overbought zone, which shows that bearish correction may be on the horizon. The moving average convergence/divergence (MACD) indicator shows decreasing bullish momentum as the signal line comes closer to the MACD line. The Elliot oscillator has had a bearish session after seven straight bullish sessions. This shows that even though the two latest price sessions were bullish, they weren’t bullish enough.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
