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Litecoin short-term Price Analysis: 23 June

Litecoin took on a very active role when the crypto-market surged over the last 24-hours, with its price noting a hike from $42.95 to $44.63. As the momentum in the market depleted, however, the valuation was back below $44, and at press time, the crypto-asset was priced just above $44.07.

In fact, Litecoin jumped above Binance Coin on the rankings and was placed 7th with a market cap of $2.85 billion, at the time of writing.

Litecoin 1-hour chart

Source: LTC/USD on TradingView

On analyzing Litecoin’s short-term movement on the charts, a couple of things pop right out.

Litecoin has faced consistent resistance at $44.05 (white dotted line), as observed, a level that last saw significant re-test on 15 June. Although the price charts noted the formation of a falling wedge from 17 June to 20 June, the positive breach did not take the crypto-asset’s valuation above its resistance at $43.69.

In the last-24 hours, the surge allowed the crypto-asset to briefly attain a position above $44.05, but the coin was back below it after 4 hours. This historical behavioral pattern is insightful for Litecoin at the moment and according to such translation, LTC may face even more resistance before it breaches $45.

The crypto-asset will possibly trade between the minor range of $44 and $43.50 over the next 24-48 hours. In fact, the VPVR also suggested that support strength at $43.76 (Red-Line) was significant, hence, an immediate breach under $43.50-$43 was unlikely.

Source: LTC/USD on TradingView

Market Indicators remained contradictive to each other as while the MACD suggested a continued bearish trend for the asset, the Relative Strength Index or RSI noted higher buying pressure which may maintain higher price consolidation.

Bitcoin-Litecoin correlation factor

Source: Trading View

Now, even though Litecoin is supposed to maintain a position above $43, its dependence on Bitcoin may alter that situation. A side-by-side comparison of Bitcoin and Litecoin’s 1-hour charts indicated that LTC reciprocated BTC’s movement over the previous day. Hence, it may follow its movement over the next few days as well.

In fact, Coinmetrics’ correlation chart pointed to a dip in correlation from 0.875 to $0.863, at press time, between BTC and LTC, with the aforementioned similarities in a position to impact price position for the 7th-ranked Litecoin.

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