Litecoin Relative Weakness Can Be a Positive Sign
Litecoin (LTC) flashes relative weakness compared to the Altcoin index, but this may be a positive sign as it will mean LTC's price has to do some catching up before it aligns itself with the overall crypto market performance. The strong bounce off the $50 round number and the daily RSI positive readings may aid the bullish case scenario.
LTC Relative Weakness
The relative weakness signal quantifies how weak the LTC price is in relation to the overall market. When compared to a benchmark like the Altcoin index, LTC's price falls behind.
The Altcoin index has made a higher high, breaking above the September high, while at the same time, LTC's price is trading below its September high of $67.42, making a lower high.
RSI Oscillator
With the daily Relative Strength Index (RSI) consolidating above the 50 midpoint, there is hope that we have enough bullish momentum to break above the current 4-month consolidation pattern.
LTC's price has been moving in consolidation between the $65 resistance level and the $50 psychological level.
The RSI touched the highest reading since March 30, but it's still far from being overbought. Consequently, the current bullish run has the potential to extend higher.
Looking forward: Yesterday's daily close above $60 is another positive development for the LTC bulls.
However, since we're still trading inside a consolidation pattern, there is still the danger of the ranging activity continuing unless we get a daily break and close above the September high.
