Litecoin (LTC), the Bitcoin (BTC) spin-off, gained a respectable 12 percent today knocking Bitcoin Cash (BCH) out of the number seven spot.
The price opened today at $24.10 per LTC and quickly shot to $27.67 before pulling back slightly. At the time of writing Litecoin is trading for $26.68 and ranked seventh with a total market cap of $1.56 million.
This latest surge was enough to kick out both Bitcoin Cash (BCH) and Bitcoin Cash Satoshi’s Vision (BCHSV) from the number 7 and 8 spots respectively.
Even with today’s pump, Litecoin is still down more than 92 percent from its all-time high in December of 2017, more or less on par with the rest of the top-50 cryptocurrencies in the current bear market.
Relative Strength Index (RSI)
Taking a look at Litecoin’s relative strength index (RSI) shows a fall within a descending channel and a ‘W’ shaped shape pattern forming with a bottom at 35.
With its latest burst of energy, it is most likely that the RSI will top out around 40 before either breaking to the upside towards the top resistance or go back down to test a lower support.
More Pain, More Gain
Litecoin’s happy days may just be taking a turn for the worse in this coming week. Today’s 12 percent surge was enough to carry the price about halfway up to the 0.236 Fibonacci level but has now come under heavy descending resistance as well.
Considering the RSI and LTC’s position at the top of the descending channel, the bulls will most likely need some more time to consolidate and recharge before being able to break out. Another steep fall to a lower support, in this case around $17.50, should be enough to force a hard bounce back to the $31 dollar range.
There is a chance that $23 will hold as a support if tested again, and could send the price shooting off towards the 0.382 Fibonacci level around $36.
Traders should be cautious entering a position on the tail end of a 12 percent bull run and should wait for confirmation of a breakout or a fall to a lower level before making a move. Those who got in at the bottom should look to take profits and call this one a win while they are ahead.
Is this just the beginning of Litecoin’s (LTC) reversal? Will LTC put in a new 2018 low by the end of the year? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold LTC.