LTCJPY closes higher for the 3rd day in a row
Litecoin/Japanese Yen Index (LTCJPY) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LTCJPY ended Saturday at 6574.79 surging ¥406.31 (6.59%) on high volume. Today's close at 6574.79 marks the highest recorded closing price since March 6th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 6287.07, Litecoin confirmed its breakout through the prior session high after trading up to ¥377.01 above it intraday.
Daily Candlestick Chart (LTCJPY as at Aug 01, 2020):
Saturday's trading range has been ¥563.49 (9.13%), that's far above the last trading month's daily average range of ¥305.79. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LTCJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 6170.04 (now S1), which is likely to act as support going forward. The last time this happened on July 27th, LTCJPY gained 4.10% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 5096.55.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for LTC/JPY. Out of 268 times, LTCJPY closed lower 65.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 58.21% with an average market move of -0.40%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more