Price is consolidating the in recent days on litecoin. We are going to look at the daily and weekly charts to see why this is actually a very good thing for longer-term upside.
Daily Point of View
Looking at the daily chart we can see ltc is now consolidating at the 108-110 area. The level that was a prior resistance. This price action is constructive as essentially price is forming a bit of a stair step pattern (though the price moves did pullback some first)
Only the daily chart it does not look like price is extended and most bulls are probably thinking, lets go – time to push higher again.
However, looking at a longer time frame we can all take a breathe and relax still.
The Weekly Point of View
We’ve had 5 straight weeks of gains, with last week edging out just a small positive and giving us a doji like candle, which indicates a bit of indecision.
This is fine in my book as we have extended away from the 10 period moving average (blue line) and some consolidation to let it catch up is ideal. It’s especially better than a pullback to it as maintaining 108 and higher over the next week or two would be very bullish.
However, even if price did pullback to the mid-90s and held the moving average, price would still be in good shape. I’m a buyer if price does peek into the 90s at all. Otherwise, I’m just watching LTC consolidate for the next move higher and ride what I have in my long-term holdings.