It seems like cryptocurrencies have been trying to take a breath in the last two weeks after the crash in May, with the price action becoming quieter in the last week. This shows that uncertainty remains high in this market, as both buyers and sellers remain hesitant.
The crash in May was massive, with BITCOIN losing around 50% during that crash, while losing more than that when measured from the very top at $68,000. LITECOIN lost even more, as it crashed around 70% lower, from $413 to $119.
The 200 SMA (purple) held as support on the first attempt and we saw a bounce off that moving average on the daily chart. But, the bounce ended at the 100 daily SMA (green) which turned into resistance and Litecoin resumed the crash again.
This time buyers broke below the 200 SMA clearly, but they couldn’t hold the price down there, as the crash ended in the crypto market and cryptocurrencies started to reverse higher. The price moved above the 200 SMA again, but it couldn’t even reach the 100 SMA this time, as it reversed down again.
Litecoin Live Chart
The highs have been getting lower since then, while the lows have been getting higher, as the 200 SMA continues to act as support and keeps pushing the lows higher. At the top, a descending trend line has formed, connecting the falling higher, while now the 20 SMA (gray) was caught up and is also providing resistance.
So, Litecoin is getting squeezed between these two MAs now and a breakout is expected soon. Although, I wouldn’t expect a major move during the breakout, unless the whole crypto market makes a decisive move. So until the sentiment changes, Litecoin will remain around these levels.