Should you buy LTC as it consolidates at key resistance?
Litecoin is currently trading at $60.94, a 1.76% dip in the past day
The pair is in a consolidation amid bullish indicators
Investors should wait for it to clear above the level
Cryptocurrencies are currently on a retracement following an industry-wide recovery. Bitcoin and Ethereum are down 3.8% and 1.92% in the past day. Litecoin’s LTC/USD dipped 1.76% in the same period.
Created in 2011, Litecoin is one of the earliest blockchains. It was forked from bitcoin as an improvement of the proof-of-work network. The platform is more scalable with a faster block time and a larger token supply. It also uses the Scrypt hashing algorithm to reduce energy consumption.
Despite being a hard fork of Bitcoin, LTC has failed to stage a recovery similar to that of the latter. LTC has gained a paltry 4% in the past month compared to 25% in BTC. This takes into consideration the wide market cap difference between the two. While bitcoin has a valuation of $454 billion, LTC is at a fraction of that with $4.3 billion.
Currently, LTC/USD is changing hands for $60.94. Its trading volume is down 17.39% at $437,281,262. Aside from the dynamics in price and volumes, LTC has important technical levels to watch.
LTC consolidates at the $61 resistance level
According to the daily chart above, LTC is consolidating around $61 resistance. The token’s attempts to break above the level have been resisted three times since June 25. Nonetheless, the chart shows that the technical indicators favor the bulls, and the token could break above.
The RSI is currently at 55. Although the momentum indicator can be interpreted as neutral, more traders are buying the token than selling it. The MACD is above the signal lines with the histograms on the green. However, investors should exercise patience until the token clears above the resistance.
Litecoin has strong fundamentals around efficiency and faster transaction speeds. Its native LTC token is consolidating at an important resistance level amid strong bullish momentum. Patience is recommended until the tokens clear the level.