Litecoin volatility continues diminishing as the pair consolidates its price close to the $135 level.
The cryptocurrency is still on a downward trend. The short and long-term moving averages are still indicative of a drop; however, the short-term moving average is starting to move upwards as the price continues to move sideways.
The markets are uncertain about the pair and continue fighting to move the price in their favorable direction; however, the pair has not moved much in the last three trading sessions. The Ichimoku cloud is moving down, which is another short signal, and the price could enter the cloud in the next two weeks; this will only reiterate the market uncertainty.
The Bollinger bands are very narrow, and the price trades between the bands, making it hard to determine which direction the cryptocurrency will move next.
Our parabolic SAR indicator suggests that the price will bounce and start an uptrend soon. The relative strength index is currently at 42%, and it remains almost unchanged. It has not gone below 39% or above 46% in the last nine sessions. At this point, the price could either continue its downtrend or have a retracement aiming for the $178 levels.
We have identified a support at the $150.375 level and a resistance at $124.913. It could take a few days for Litecoin to reach one of these levels. Only then would we be able to predict a movement direction.
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