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.
Technicals:
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.