Litecoin’s Current Market Outlook
Litecoin (LTC) recently displayed signs of possible exhaustion after undergoing an upswing. This transition comes about as shareholders begin taking profit. If the profit take begins a chain reaction towards panic selling, LTC holders face a potentially steep correction Litecoin outlook.
The Impact of A Potential Range Sweep
In late August, Litecoin established a range between $57.69 to $70.69, which held up through September. This range underwent a sweep, culminating in a local top of $72.89 by October 24th. After this peak, shareholders began to take their profit, resulting in the alternative currency falling back within the established range.
With a current Litecoin price of $67.40, investors can anticipate a continuation of this pullback. On the 12-hour chart, the Relative Strength Index (RSI), currently above 50, could be a crucial determinant. An RSI fluctuation or bounce off the mean level could become an essential factor in judging Litecoin’s future.
Consequences of Bull Failure
Should bull market investors fail, it could potentially lead to a breakdown of the RSI’s 50 level, placing a bearish outlook. In such a scenario, the Litecoin price could slide lower and work towards the sell-side liquidity resting just below the October 19’s swing low of $59.70. However, if maintained within an ideal range, LTC could encompass the range bottom of $57.69, resulting in a 15% fall.
Ethereum’s Potential Impact on Litecoin
Interestingly enough, Ethereum’s market performance significantly lowered over the past 24 hours, with its price falling 1.49% to $1,779.6. The RSI currently sits below 50, suggesting a bearish outlook. However, the price falls above the 50 EMA, invoking a short-term bullish trend, which may influence Litecoin’s performance given their relationship as alternative cryptocurrencies.
Invest Beware
While the possibility of a bearish outlook for Litecoin seems plausible, its effect depends significantly on the play out of the 12-hour RSI. If the RSI shows a robust demand as it reaches the 50-level, investors might foresee an upswing in Litecoin’s price, which could tip the range high of $70.69. Consequently, a definite flip of this range into a support floor would dispel any bearish assumptions.
Investors, traders, and enthusiasts, please feel free to share your thoughts and comments on this current market trend.
