Litecoin’s [LTC] tryst above $200 was short-lived, as the altcoin settled below following a fresh wave of correction on the 17th of March. The crypto-asset has managed to hold its fort among the top 10 coins in the leaderboard despite tumbling down to the ninth-spot.
Litecoin was in a highly volatile phase making the market more prone to selling pressure. Its price was turned down at multiple resistance levels. Over the past 24-hours, the crypto-asset was down by 1.12% which drove it to $197.9. In addition, LTC held a market cap of $13.16 billion and a 24-hour trading volume of $4.4 billion.
Litecoin has withdrawn from yet another critical resistance point after forming a lower top depicting a profit-taking sentiment by the investors at the level. This essentially means that these entities were clearly exiting their positions at times of spikes.
Besides, the candlesticks are now closing in on the 50 DMA [Pink]. It is important for the LTC candles to manage to stay afloat above the moving average to target higher levels in the coming days. The 100 DMA [Blue], on the other hand, remained below the Litecoin candlestick arrangement as well as the 50 DMA.
The technicals posted a contradictory picture for the altcoin.
The red closing bars of Awesome Oscillator flipped to bearish momentum following the market-wide pullback. The Chaikin Money Flow [CMF], however, noted a fresh uptick suggesting an inflow of capital as the crypto-asset made a bearish retreat close to a key support level.
The RSI, remained consistent with the token’s price action and slid down near to the 50-median line after forming a lower high. This indicated that despite the downward pressure, the bulls have managed to defend the crypto-asset’s price in the buy territory.
This, however, does not invalidate the volatility which could potentially push the value of LTC lower in the short-term thus reactivate the sell-pressure in the market.
The bears are trying to pull the price to retest lower level, in which case, support points such as $177 and $155 could be tested. If the price momentum switches in favor of the bulls, the resistance levels to look out for were $200, $226 and $256 respectively.