Litecoin was previously trading lower below a descending trend line that had been holding for months already. However, the price might be done with its slide as bulls have pushed for an upside break of this falling resistance.
The 100 SMA is still below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, the downtrend is still more likely to resume than to reverse. Then again, note that litecoin has closed above the 100 SMA as an early indication of bullish momentum.
The next upside target might be the area of interest around $30 then the previous resistance around $35.655. The 200 SMA might also hold as near-term dynamic resistance also.
RSI is heading up but already dipping into the overbought region to signal that buyers are exhausted. The oscillator has yet to turn lower to signal a return in bearish momentum. Stochastic is also in the overbought zone and is starting to top out and might be ready to move down to indicate selling pressure.
The strong price surge over the past few days has allowed Litecoin to overtake Bitcoin Cash in terms of market cap rankings. Keep in mind that these digital assets share several similar features, so the ‘flappening’ has been something that many are keeping a lookout for.
This has actually been predicted by Litecoin founder Charlie Lee in the past, citing that litecoin could take the top 7th spot before the end of the year versus the forked versions of Bitcoin Cash: Bitcoin ABC and Bitcoin SV.
LTC exceeded BCH’s market cap by $5 billion and enjoyed almost four times higher daily transactions, based on community-formed data aggregator called “Flappening.watch” on Friday. Of course, as more folks drew attention to this phenomenon, buying pressure likely piled on for Litecoin versus BCH whose network upgrade was actually blamed for the crypto crash lately.
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