Litecoin reached towards the $97 level on the Monday trading session, to break above the top of the Bollinger Band indicator. This shows an overbought condition and does suggest that perhaps we are going to see a bit of a pullback. As the crypto markets have gotten a bit ahead of themselves as of late, this would make perfect sense, even if you are bullish.
Litecoin has been performing better than most of the other major coins for the last several months, and while some of its major competitors such as Bitcoin and Ethereum were going sideways, Litecoin was finding buyers. Now that the others are starting to pick up momentum, it stands to reason that it will continue to go higher eventually. However, there are a lot of questions right now about the monetary policy of the Federal Reserve and therefore whether or not there is going to be a lot of liquidity in the markets going forward. Liquidity is part of what drives innovation, and by extension crypto.
The 20 SMA of the Bollinger Band indicator is just above the $84 level, and traditional analysis of the indicator suggests that we could pull back to that area. That being said, the Monday session did open up with a huge bang, as traders bought immediately. Whether or not the gap from the spot market holds is a completely different question, because there could be a significant amount of support near the $88 level.
Alternatively, if the market were to go ahead and break above the top of the candlestick for the Monday session, almost certainly opens up an attack on the $100 level, which is the next major psychologically important figure for traders to ponder. Either way, it’s more likely than not going to be choppy over the next couple of days, especially as we get closer to that Federal Reserve decision, which will have a lot of influence on the flow of money around the world, albeit not necessarily a Litecoin specific issue.
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