Litecoin At a Critical Crossorads

8 ביוני 2019

At first look, Litecoin’s price action is extremely bullish.

First, we can see that the price for Litecoin has soared through the roof since the end of 2018.

There are a host of other notable observations that can be made for Litecoin as well, but let’s check out what a ‘zoomed out’ view of the daily resolution brings us first:



From the chart above, we can make the following observations:

1. Litecoin is currently nudging against an overhead resistance

2. Litecoin has clearly broken its long-term overhead resistance (unlike Ethereum; which we detailed in the prior price analysis)

3. Litecoin is currently fighting against a fairly strong overhead, horizontal resistance at $117.54

The question that must be answered at this point is whether there is enough momentum behind Litecoin for it to break past the $117 point of resistance.


Let’s check our momentum indicators and see.

Relative Strength Index (14)



The RSI(14) not good for Litecoin bulls. As one can see above, there is a clear and defined trend of lower highs for the RSI(14) on the daily resolution for Litecoin.

This is usually a tell-tale sign that buy pressure is starting to subside and that the asset in question may flip bear soon.

Juxtaposing this with the fact that the price of Litecoin is currently at an overhead resistance is a huge warning sign.

However, the Cryptomedication Volatility RSI says otherwise.

Cryptomedication Volatility RSI [Custom Indicator]

This is an indicator that Zerononcense hasn’t busted out for quite some time, but it is still reliable.

Let’s check out what we can see below:



From what we can see above, the indicator has signaled that there will be increased growth in the near future for Litecoin.

However, in light of the RSI(14), this indicator should be taken with a grain of salt.

Let’s see what other helpful hints we can find.

Balance of Power RSI [12 Hour]



The Balance of Power RSI (seen above) on the H12 is showing us a huge spike in buy pressure.

This is definitely worth noting.

Looking Back at the Chart on the H12 Resolution



In the picture above, we can see that the EMA-50 has been successfully tested thus far.

Thus, if the price of Litecoin does fall, the EMA-50 (which is hanging at $102 at this current point in time) should be considered a reliable point of support.

Litecoin Weekly Resolution



Momentum Indicators On the Weekly Resolution



The RSI(14) is bullish for Litecoin on the weekly resolution.

However, the Balance of Power RSI, on the contrary, is not. This should be watched very closely in the coming weeks.



Volatility RSI just signaled a continuation of the trend once again (greater volatility in expansion) a couple of weeks ago. This is also notable:



Conclusion

This one is simple for Zerononcense.

In the opinion of Zerononcense (not financial advice) if one is not in Litecoin currently, an entry at this point (at the resistance) is more than likely not prudent.

However, this does not mean that a short is inherently intelligent either.

As noted in the above photo (posted below for convenience), the price of Litecoin is bound to either soar upward or plummet downward depending upon what ‘decision’ the market makes:



This is a conclusion that will more than likely piss off readers (sorry!), but posting any R/R at a resistance or a support is never good trading practice.