LTCUSD finds buyers at key support level
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LTCUSD finished Saturday at 61.71 surging $3.49 (5.99%) on high volume. Today's close at 61.71 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 59.19, LTC confirmed its breakout through the previous session high after trading up to $3.11 above it intraday.
Daily Candlestick Chart (LTCUSD as at Aug 01, 2020):
Saturday's trading range has been $4.65 (7.99%), that's above the last trading month's daily average range of $2.81. 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 LTCUSD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 27th, LTCUSD gained 4.69% on the following trading day.
After trading down to 57.65 earlier during the day, Litecoin bounced off the key technical support level at 57.88 (S1). The failure to close below the support might increase that levels importance as support going forward.
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 although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 47.93.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LTC/USD. Out of 381 times, LTCUSD closed lower 58.01% of the time on the next trading day after the market condition occurred.
With six out of the other six 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 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