The price of Litecoin rose to $ 81 on Wednesday amid notable news for the cryptocurrency, often referred to as silver for bitcoin gold.
The world’s sixth largest cryptocurrency by market value appears to have received an offer for reports that the Litecoin Foundation has acquired a 9.9 percent stake in the German WEG Bank through a new partnership with the crypto-to-fiat payment provider TokenPay.
The strategic partnership has opened the doors for new consumer-oriented crypto payment solutions and, according to Charlie Lee, founder of litecoin, is a “great win-win situation” for all parties.
While the news must have pleased the battered Litecoin bulls today, the technical charts remain biased towards the bears.
At press time, LTC is trading at $ 79.50 – up 4.73 percent in 24 hours after losing more than 50 percent in the past two months. According to CoinMarketCap, trading volume has stagnated at just over $ 3 billion in the past 24 hours.
Litecoin’s decline from the session high of $ 81.00 means the bulls were unable to break the falling trendline resistance.
The graph also shows a bearish transition between the 5- and 10-day moving averages (MAs).
In addition, the long-term MAs are positioned one below the other and tend south in favor of the bears.
Thus the path of least resistance is downwards.
On the longer-term chart above, the 5 and 10 week MAs are sloping down, indicating a bearish set-up. The relative strength index (RSI) is below 50.00 (in the bearish territory).
- A break below USD 75.42 (today’s lows) would strengthen the already bearish technical setup and could lead to a decline to USD 69.00 (100 week MA).
- Only a daily close (according to UTC) above the falling trend line would confirm a short-term trend change from bearish to bullish.
Disclosure: The author has no cryptocurrency holdings at the time of writing.
Litecoin image via Shutterstock