The crypto market is seeing gradual declines after a period of consolidation. This was particularly noticeable in the altcoin market and so was the price action of Litecoin. The price of the coin consolidates in the short term. We can expect another liquidation in the market.
The current market value of the digital asset was $ 106 with a market cap of $ 6.9 billion.
One hour chart in Litecoin
Source: LTC / USD on TradingView
The above 1 hour chart of Litecoin highlights the consolidation between support at $ 102.57, resistance at $ 103.46. Even though the value of LTC breaks the support, there was not enough volume to confirm the trend. Despite a push and pull from traders in the market, a drop in LTC looks imminent. It gives an opportunity to sell the asset.
Reasoning
The relative strength index rebounds from the support line of the oversold zone. LTC pushed into the neutral zone but remained close to oversold. The price has not yet stabilized. But the cryptocurrency could suffer another sell off before it can stabilize.
The Awesome Oscillator shows strong selling pressure in the market. The AO maintains its position below the zero line. Due to the formation of saucers, in which a red bar follows two green bars confirms the market decline.
Position
Admission: $ 103.90
Stop-Loss: $ 105.40
Cash in: $ 98.58
Risk-reward: 3.55
Conclusion
Short term market momentum was weakening and the downtrend was evident in the market. Buyers are trying to stabilize the price. Thus, the chances of a sale increase more visibly. This could give traders the opportunity to sell LTC and take a profit at $ 98.58.
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