Litecoin (CRYPTO: LTC) is trading slightly higher Friday as it could be forming a bottom and ready to make a comeback. Litecoin has been on a steady downward trend for the past few months as the crypto market has been moving bearishly.
Litecoin was up 3.53% at $108.93 Friday afternoon at publication.
Litecoin Daily Analysis
The crypto has been trading lower for the past few months and is now possibly finding a bottom. In early December 2021, the crypto broke below the higher low trendline which hinted a downward trend was coming. Higher lows need to form once again for the crypto to possibly start up-trending.
The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
The Relative Strength Index (RSI) has been free-falling lower the past few days and sits at 31. This is on the border of the oversold region and shows the crypto is seeing many more sellers than it is buyers. If it falls further into the oversold region it may continue to see downward movement.
What’s Next For Litecoin?
Litecoin has been dropping since December 2021 and hasn’t shown it is ready to bounce just yet. Soon the currency will likely bounce and will start trending higher with the rest of the market when the bear market ends. Bullish traders are looking to see higher lows and for the crypto to start trending higher once again. Bulls also want to see the RSI climb back above the middle line to show that more buyers are in the stock than sellers. Bearish traders are in control of the crypto and are looking to see it continue to fall lower and form lower highs.
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