I thought it would be interesting to follow up the on and consider another of the popular cryptocurrencies and in this case, it is , to highlight both the similarities of the daily charts, but also to show some differences which may ultimately prove to be interesting.
If we consider the similarities first, the volatility candle of May 19 saw this cryptocurrency also falls sharply along with the others, and close with a wide spread down candle on extreme volume, but with a wick to the lower body, signaling some buyers stepping in at the extremes.
As with Bitcoin, Litecoin then moved into a congestion phase around the volume point of control denoted by the yellow dashed line and anchored at $175. However, in the middle of June Litecoin then broke away from the VPOC to the downside on rising volume and at the same time took out the low of the volatility candle in the $150 area and testing the $100 price region before recovering and moving into a narrow congestion phase lacking in volatility as with Bitcoin, but at a lower level from the VPOC itself.
As we might expect with such contained price action, volumes have also fallen over the last week or two to very low levels. The worrying aspect here for Litecoin and Bitcoin bulls by extension is the fact the price has broken lower from the VPOC. As we saw on June 27 the buyers stepped in at $100 and reversed the decline which we will need to see repeated and with solid rising volume if Litecoin is to return to the VPOC at $175 in the short to medium term.
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