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Litecoin Price Analysis: Litecoin bounces off the mean value area in the latest consolidation zone

  • Litecoin has moved 3.15% lower on Wednesday's session as crypto sentiment remains weak.
  • The price has moved into a consolidation area between 40 and 50.

LTC/USD 4-hour chart

Litecoin, like all of the crypto majors trades lower on the session on Wednesday. The price has moved below the 45.60 support area and found some support just under 43.00. The 43.00 area has been used many times in the past and is represented on the graph below by the red line. This is also a key "value area" as it has been touched many times before. 

The Relative Strength Index indicator has moved into a more bearish zone under the 50 mid-line, which could be a sign that more bearishness is to come. One of the main feature on the chart is the bounce off the top of the trendline which slopes down from the high of 50.96. If there is to be a retest of higher levels this trendline would need to be taken out so keep an eye on it if you are bullish. 

Conversely, as the market has made a few lower highs and lower lows it would be prudent to look for good support zones. The next major one beyond the red line is the black line at 41.00. Once again it has been used to good effect on multiple occasions and could play a pivotal role in the future price action. 

Litecoin Consolidation

Author

Rajan Dhall, MSTA

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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