The cryptocurrency market has been going through some fluctuating times, with the prices swinging between bullish and bearish rapidly. This phenomenon has led to altcoins climbing well above expected rates.
Litecoin, Charlie Lee founded cryptocurrency had taken a backseat when it came to developments but its price had always kept the market interested. The cryptocurrency had gone through the same bearish trudge like its compatriots and had recently rallied on the price charts.
At press time, Litecoin’s price was $45.56 with a total market cap of $2.907 billion. Over the previous 24-hours, the value of the sixth-largest cryptocurrency had tanked by 4.81 percent causing the daily market volume to fall to $3.505 billion.
The trend line indicated a recent drop in LTC price but that had not threatened earlier supports. The immediate support on the hourly chart was $43.98 while the asset was trading for $45.35. The sideways movement seems to replicate earlier patterns.
The Awesome Oscillator was beaming red and green after a mixed market runs for Litecoin. The fluctuation in the LTC market has caused market pressure to stay high.
The Chaikin Money Flow indicator had fallen below the zero line on the hourly charts. This was an indication of the capital leaving the market overtaking the amount of money coming into the market.
The Relative Strength Index was nearer to the oversold zone than it was ever before in 2020. The sudden fall on the graph can be attributed to Bitcoin’s price fall, causing a lot of people to sell their stocks rather than buy more.
The daily chart showed a healthy recovery for Litecoin’s price point. Since November 2019, the cryptocurrency had taken a massive hit in price and January was the first time that it saw sustained recovery. The immediate support in the long term was $36.69 with the trend line indicating upward movements.
The Chaikin Money Flow indicator was above the zero line for the first time in two months and that meant investors were beginning to come back into the Litecoin ecosystem. The higher capital inflow was also appreciated by many of the members in the community.
The Relative Strength Index was near the overbought zone after there was a massive increase in buying pressure over selling pressure. As more and more people accumulate Litecoin, the buying pressure will only increase.
The Awesome Oscillator had tapered towards January as the holiday season took some steam off the cryptocurrency market. Litecoin in the long term was treading through positive market pressure, albeit in small amounts.
Litecoin’s price can be expected to stagnate a bit more with hints of bullish essence. As long as the price of Bitcoin does not swing upwards significantly, Litecoin holders need not expect another price hike either.
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