Litecoin is finding support at the previous lows, suggesting that bulls are defending the $48 area strongly. Price could retest the area of interest around $70 once more and complete the formation of a double bottom pattern.
This would also be a former support zone, so it would take a strong bullish catalyst to sustain a move past this area of interest. From there, Litecoin could climb to the next resistance around $90 next.
The 100 SMA is above the longer-term 200 SMA for now but seems to be attempting to cross lower. In that case, selling pressure might still pick up and lead to another dip to the lows or even a break lower.
RSI appears to be heading up to signal the presence of buying pressure. However, the oscillator is near the overbought zone to signal exhaustion. Turning back down could bring selling pressure in and lead to a continuation of the slide. Similarly, Stochastic is moving south, so Litecoin could follow suit.
Litecoin drew a boost from news that Gemini is set to introduce LTC support on October 13. According to a tweet by the company, the New York-based startup founded by the Winklevoss twins is including Litecoin in the platform on its seventh anniversary. The platform will also have support for Bitcoin Cash and ZCash.
Recall that the Winklevoss twins also scored a victory in getting approval from the New York Department of Financial Services in introducing a stablecoin or one that is backed by a fiat currency. The Gemini dollar combines the price stability of the US dollar with Ethereum blockchain technology and the oversight of regulators.
This has kept the mood positive in the industry as the focus is returning to institutional interest and positive developments that could bring more products to the mainstream market.
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