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Litecoin Signals Bullish Continuation

After a consolidation around 2.00 for the first half of the year, litecoin has become bullish in June and through July. It surged into mid-July but found resistance around 9.00 mid-month. Then, we saw a sharp pullback almost back to 3.00. Despite this sharp correction, litecoin still looks bullish as we get into the last week of July. 

Litecoin (LTCUSD) Daily Chart 7/26

(click to enlarge)

In the daily chart we can see that after price came retreated it stalled around 4.00 for a little over a week. Here, price remained above the cluster of 200-, 100-, and 50-day simple moving averages (SMAs), and the RSI held above 40. These are strong signs that bulls are still in control. At the end of last week, price pushed above the week-long consolidation and is now about to reclaim the 5.00 handle. 

For now, litecoin's daily chart looks bullish with a bullish continuation signal that puts the 9.00 handle back in play in the upcoming month. However, we should not expect the strong volatility we saw in June-July. If ltcusd is indeed bullish, we should anticipate a drift back up to 9.00 instead of the surge we saw in June/July.