Technical analysis LTC/USD, October 7

07.10.2020 15:00:39

Yesterday, the Litecoin price jumped from $45,86 to the daily high of $48,22 within 1 hour, but could not hold above the level of $48. Today, the bears increased their pressure and pushed the Litecoin price back down to the $45.45 support area. At the time of publication, the pair LTC/USD is trading around $46.

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After the price surge, a correction followed, which returned the pair LTC/USD to its usual price range, limited by the $45 and $47 levels. Yesterday's price surge also resulted in a significant increase in trading volume.

At the time of publication, Bollinger Bands are narrowing, signaling a decrease in volatility. And the RSI indicator returned to the neutral zone after a sharp move into the overbought zone.

There is a situation when a trend reversal may occur in the Litecoin market. To do this, the pair LTC/USD must overcome the nearest resistance level of $46,48 and go beyond the trading range again, that is, rise above $47. The MACD indicator should rise above the 0 mark, while demonstrating a gradual rise.

If the bears try to develop the decline, they need to push the LTC price below the $45,44 support level. In this case, we will see a decline in the LTC/USD pair to $44,35.