Litecoin is Ambivalent

Price Analysis Jan 15, 2021

This is a no-trade (people won't like that but boo-fucking-hoo).

Let's see what the price chart for Litecoin looks like:

The yellow line in the chart above stands for the EMA-50. Since we're on the daily, we're going to put a lot of weight behind that EMA-50 point (this always serves as a significant point of resistance / support for any coin at any level).

On the daily resolution, we can see that that's hovering at $120.

Thus, our downside if we're considering the EMA-50 to be a reliable stop is as follows:

A whopping -17.78%, which is too much of a loss for us to take on an entry if that's what we're counting on. So if we enter in long here, we better be certain that there are going to be positive returns from this point.

Balance of Power RSI

The Balance of Power RSI for Litecoin looks as though its beginning to trend upward in a positive direction.

There's not quite enough data on the daily resolution for us to say that definitively, but this is still worth noting at least:

We can see that from December 20th to January 13th, the Balance of Power RSI has been declining steadily and there's a chance that this recent uptick may be apart of that same negative trend.

But given the fact that we're getting closer to an extreme in sell pressure (when the line falls below the RSI ob/os overlay) and we're in a bull market, we should be ready to scoop this one back up in case it does begin shooting back up.

What's notable is that even over that time period while the Balance of Power RSI was swinging downward, the price of Litecoin will still steadily trending upward:

What This Means

This means that Litecoin is a coin that has been giving reliable returns even during periods of consolidation.

Thus, the 'cool off' periods are really just periods of time when the price is not appreciating as much as it does whenever its been undergoing its sensational pumps throughout the year to this point.

Balance of Power RSI Weekly Resolution

We can see the Balance of Power RSI is still at an extreme (on the bullish side of things).

Librehash RSI(14)

Its hard to get a definitive reading here on the daily resolution for Litecoin (see below):

There's no real discernible trend in the RSI(14) for Litecoin on the daily resolution and it would be foolish for us to look too closely into it and extract out meaning from it that really isn't there (seriously).

So we'll just leave that where it is (for the time being).

Librehash RSI(14) on the Weekly Resolution

The weekly resolution, however, is a completely different story for Litecoin (see below):

Based on what we can see here, the weekly resolution's RSI(14) is telling us that there is a strong bull trend in place for Litecoin.

Exponential Moving Averages  (Weekly)

The EMAs are still bullish for Litecoin on the weekly resolution as well (and recently just got a little bit more bullish as well).

See below:

In the chart above:

A) Golden line = EMA-50

B) Green line = EMA-100

C) Purple line = EMA-200

When it comes to moving average indicators, you always want to see them 'stack' in order from "fastest" (shorter lookbacks) to "slowest" (longer lookbacks).

So, in this case, you'd want to see:

EMA 50 > EMA 100  > EMA 200

If the above is true, that can be used as a confirmation of bull trend. Its most important that the shortest moving average is at the highest price point (meaning that the smallest lookback period has the highest average price).

Librehash Volatility RSI

This is one of our free indicators actually and it couldn't be more bullish on the weekly resolution (from what we can see).

There's not too much more to take from this, so we're going to leave this here.

Latest Candle on the Weekly Resolution

Long tail on the candle:



Happy to serve and help wherever I'm needed in the blockchain space. #Education #EthicalContent #BringingLibretotheForefront

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