Litecoin carried the flag of extreme volatility over the past 30 days after witnessing a couple of major price swings. The collective market decline on 24 September pulled the coin down by over 29 percent, equivalent to around $20. On 25 October however, Bitcoin’s massive rally had assisted the rest of the altcoin market, including Litecoin, with the silver coin managing to climb up to $64. At press time, corrections had pulled back its valuation to $58.03, but further bullish signs were observed on the charts.
The 6-hour chart clearly identified some major price movements and indicated a depreciating price, at press time. However, LTC’s movement over the past few days exhibited the formation of a bullish pennant. Litecoin’s valuation had adhered within the pennant’s trend lines and the possibility of a bullish breakout was high. The immediate resistance was placed at $63.97; however, without significant momentum, it would be difficult to breach it, despite a surge.
The decreasing trade volume of Litecoin confirmed the observed bullish pennant. The trade volume should spike up as the coin breaks out.
The 1-day chart for Litecoin recorded the appearance of a flag, one that followed the same possibility of a bullish breakout. The decreasing volume suggested that traders were holding their position in the market and an increase in trade volume should surface during the bullish breakout.
The MACD indicator also suggested that the trend was bullish for Litecoin in the long-term, a trend which improved on the possibility of a bullish break.
The immediate resistance for Litecoin remained at $63.42, similar to the 6-hour chart, followed by more resistances at $71.56 and $77.85. However, even though the trend was bullish, the 100-Moving Average still maintained an upper-hand over the 50-Moving Average,