Should you buy LTC as it consolidates at key resistance?

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  • Litecoin is currently trading at $60.94, down 1.76% from the previous day

  • The pair is in a consolidation between bullish indicators

  • Investors should wait for it to rise above the level

The cryptocurrency is currently on a retracement level after an industry-wide recovery. Bitcoin and Ethereum are down 3.8% and 1.92% over the past day. Litecoin’s LTC/USD dropped 1.76% in the same period.

Created in 2011, Litecoin is one of the earliest blockchains. It was forked from bitcoin as an improvement to the proof-of-work network. The platform is more scalable with faster block times 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 make a similar recovery to the latter. LTC is up 4% in the past month, while BTC is up 25%. This takes into account the wide market cap difference between the two. While Bitcoin is valued at $454 billion, LTC is valued at $4.3 billion.

Currently, LTC/USD is changing hands towards $60.94. Its trading volume is down 17.39% at $437,281,262. In addition to price and volume dynamics, LTC has important technical levels to watch out for.

LTC consolidated at the $61 resistance level

Source: TradingView

According to the daily chart above, LTC is consolidating near the $61 resistance area. Attempts to break above the level of the token have been resisted three times since June 25. Nevertheless, the chart is showing that technical indicators favor the bulls, and the coin 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. MACD is above the signal lines with the histogram on green. However, investors should be patient until the coin breaks above the resistance level.

ground level

Litecoin has strong fundamentals around efficiency and fast transaction speed. Its native LTC token is consolidating at an important resistance level amid a strong uptrend. Patience is recommended until the token level is cleared.

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