Litecoin [LTC] has been in a consolidation phase currently. The token has felt significant pressure owing to the market downside fell close to its crucial support region. However, the latest plunge by the market was a healthy market correction rather than a crash, as several tokens started their recovery shortly thereafter.
As for the broader cryptocurrency market, the figures jumped back to $1 trillion as Bitcoin and the altcoin bunch geared up for a fresh rally.
Litecoin [LTC] has been oscillating within a rangebound of $120 -$180 for the past couple of weeks. Despite a bullish start to the day, it was down by 4.61% over the past 24-hours and was currently trading at a price of $142.03. Furthermore, the crypto-asset registered a market cap of $9.45 billion and a 24-hour trading volume of $8.17 billion, at the time of writing.
Litecoin [LTC] Daily Chart:
As noted previously, Litecoin [LTC] closely followed a rising wedge pattern which was a clear indication of a correction as depicted in the above chart. The downward momentum was, however, weak, and the support level was found to have managed to hold the price of the token from a damaging plunge.
Litecoin was exchanging hands closer to its nearest support level, hence it is a crucial stage for the bulls to fight off the negative pressure in the market and hold the fort.
Litecoin’s technical indicators do not appear to be wildly optimistic in the coming days. The converging Bollinger Bands, for instance, does not show a period of volatility in the near-term and indicated a rather inaction in terms of price movement.
The MACD formed a bearish crossover below zero depicting a weak negative sentiment with the potential to flip on the other side.
The RSI fell from the overbought zone and touched the 50-median line twice depicting a buying pressure in the crypto market.
Litecoin might very well consolidate for a few more days before exhibiting a definite breakout pattern. If the bulls manage to outpace the bears, LTC could target its neares resistance points of $177, $210, and $256 respectively.
Meanwhile, crucial support levels for the crypto-asset were found at $134, $101.2, and $69.6.