The Litecoin market has seen significant growth in price since the beginning of the year. At the time of this writing, LTC has yielded 93% of its investors to date.
LTC is trading at $ 257.39 with a market value of $ 17.22 billion. The digital asset has recently been on an upward trend, but will it be able to drive that high value forward in the market?
1-day Litecoin price chart
Litecoin price is trading in an ascending channel and witnessed a strong rise as the price exited the channel. LTC saw the price rise from $ 163 to $ 258 in 16 days and turned the widespread decline into a bullish market.
However, LTC is trading closely to the resistance at $ 258 and if it rejects this price level, the value could drop further.
The increase in the value of the digital asset has caused increased volatility in the market. The divergence of the Bollinger Bands was an indication of increased volatility, while the signal line moved below the candlesticks. If the price drops, the signal line will serve as support.
Meanwhile, he points out that it is very close to overbought, as its relative strength index reaches 68. The market is witnessing the selling pressure build up at this stage and if it rises, the RSI will be pushed towards the equilibrium zone.
As the market changed trends, momentum remained high due to the recent volatility. The bullish momentum can help the asset maintain its high value, but the increase in selling pressure may cause a correction.
The current Litecoin market is on the rise. However, an increased sale could drive the price of the digital asset below $ 200. With the 50 moving average and the signal line providing support near $ 200, the price may not fall below this point.