While most coins were experiencing a recovery period in recent days, enthusiasm was lacking from Litecoin. The asset has been unable to break away from its support at $ 45 a bit, staying close to the price range. With a 24-hour change of -2.5%, Litecoin it had a market capitalization of $ 2.98 billion, sliding down to 12th in the rankings.
Litecoin 1-day chart
As has been observed, since the collapse of September 2, Litecoin it has largely oscillated within a descending channel. Bearing bullish implications, the move up could take Litecoin a bit of time. At the time of writing, the 20 exponential moving average continues to drive high selling from the top and the 50 moving average hovered above the candles. Right now, the asset has been removed from support at $ 45, but a retest imminent and a dip are on the cards.
The Stochastic RSI also suggested a bearish crossover with the blue line moving below the signal line. The price is less likely to move above the 20-EMA as a drop to $ 40 is also feasible.
Fibonacci Retracement Resistance
If Fibonacci retracements are observed during Litecoin, the price has hardly had a bullish movement in weeks. Holding a position below 0.236 Fibonacci, the bullish momentum is fully triggered and at this point the asset is likely to be dependent on the rest of the market to recover.
Awesome Oscillator showed a bit of hope, but the bullish intensity remained extremely weak.
Litecoin still has an active mining base
In the last 6 months, the Litecoin hashrate has doubled.
– Al (@lite_shaus) September 28, 2020
From a fundamental point of view, the Litecoin space is not dead with its hashrate doubling since March. It can be speculated that the ecosystem still has value in terms of being the most compatible and similar to Bitcoin. However, being similar to Bitcoin is no longer buying the interest of a trader, so the asset may need to start developing developments in space to avoid redundancy.
This is a machine translation of our English version.
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