Litecoin sellers failed in their last two attempts to break below the $48 support level, creating a double bottom pattern on its 4-hour chart. Price has yet to test the neckline around $68 before confirming that a reversal is in the cards.
The 100 SMA is still below the longer-term 200 SMA, though, so the path of least resistance might still be to the downside. In other words, there’s a change that the downtrend might still resume. Then again, the price is trading above both dynamic inflection points at the moving averages so they might hold as dynamic support from here.
Stochastic is moving up to indicate that buying pressure is in play, but the oscillator is already closing in on the overbought zone to reflect exhaustion. Turning lower could bring sellers back in and lead to a dip to the bottoms again. RSI has some room to climb before hitting overbought conditions so buyers could have energy left to push for more gains.
A handful of positive updates pertaining to Litecoin may be responsible for its quick rally over the past 24 hours. First is the addition of litecoin support by SFOX as part of its broader company expansion to become a premier institutional crypto asset management platform. On its press release, the company stated:
Because we cater to investors who are accustomed to Wall Street standards, we only add cryptocurrencies we are completely confident in. Litecoin has utility and liquidity, and is supported by a great team at the Litecoin Foundation. We are happy to deliver on our promises and provide our customers with an option that they’ve been asking for.
Next is the availability of support for Litecoin Lightning Network at RaspiBlitz. CoinText also announced its readiness to add litecoin and dash to its SMS service, which offers microtransactions without the need for a bank account.
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