Litecoin (CRYPTO: LTC) did a little better than Thursday Bitcoin (CRYPTO: BTC), with the latter trading roughly 5% below Wednesday’s low of $ 63,525.
Though Litecoin traded roughly 4% lower in sympathy with Bitcoin, crypto appeared to be digesting Wednesday’s bullish surge of nearly 10%.
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The Litecoin Chart: Litecoin created a bullish double bottom pattern on September 28th and September 29th and turned into a steady uptrend on the daily chart. The cryptocurrency has since made a series of higher highs and higher lows, with the most recent higher low at $ 176.40 and the most recent higher high printed on Thursday at the $ 214.80 mark.
Litecoin had to consolidate to lower its relative strength index (RSI), which stood at 70% on Wednesday. If the RSI of a stock or cryptocurrency approaches or exceeds the 70% mark, it becomes overbought, which is a sell signal for technical traders. Litecoin may need further consolidation on the daily chart to bring its RSI down to a more comfortable level near 60%.
The above-average volume of Litecoin indicates that there is a high level of interest from traders and investors in the cryptocurrency. On Thursday afternoon, Litecoin volume approached 400,000, compared to the 10-day average volume of 344,097. If Litecoin consolidates, more bullish traders would like to see volume decline.
Litecoin trades above the eight- and 21-day exponential moving averages (EMAs), with the eight-day EMA trading above the 21-day trend, both bullish indicators. The crypto is also trading above the 200-day simple moving average, suggesting that overall sentiment is bullish.
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