Litecoin Fares Better Than Bitcoin During Crypto Sector Pull Back

Litecoin LTC/USD was faring slightly better on Thursday than Bitcoin BTC/USD, with the latter trading down about 5% under the Wednesday low of $63,525.

Although Litecoin was trading about 4% lower in sympathy with Bitcoin, the crypto looked to be digesting Wednesday’s bullish increase of almost 10%.

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The Litecoin Chart: Litecoin created a bullish double bottom pattern on Sept. 28 and Sept. 29 and reversed into a consistent uptrend on the daily chart. The crypto has since put in a series of higher highs and higher lows with the last higher low sitting at $176.40 and the most recent higher high printed on Thursday at the $214.80 mark.

Litecoin was in need of consolidation to drop its relative strength index (RSI), which was measuring at 70% on Wednesday. When a stock or crypto’s RSI nears or exceeds the 70% level it becomes overbought, which is a sell signal for technical traders. Litecoin may need further consolidation on the daily chart to drop its RSI to a more comfortable level near 60%.

The higher-than-average volume in Litecoin indicates there is a high level of trader and investor interest in the crypto. On Thursday afternoon, Litecoin’s volume was nearing 400,000, compared to the average 10-day volume of 344,097. If Litecoin consolidates further bullish traders would like to see declining volume.

Litecoin is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 200-day simple moving average, which indicates overall sentiment is bullish.

Photo: Elvind Pedersen via Pixabay