Bitcoin continues trading around the $27,000 mark, with the local trend on the main cryptocurrency's chart remaining bullish. Here's an in-depth look at the market dynamics of Litecoin (LTC) and Aave (AAVE) for Wednesday, September 20.
Litecoin (LTC)
Both the local and global trends on the Litecoin chart remain bearish. The asset is currently hovering around the resistance zone of $68.4-$72.8. Key sell orders are positioned slightly higher, at the $76 mark and within the range of $81.00-$86.15.
As of now, the trajectory suggests a potential further decline in the LTC price. The critical support zone lies between $55.8-$61.5. Should the buyers fail to maintain this range, LTC could drop to the levels of $52.7 and possibly even $50.
The market's reassessment of Litecoin's halving still impacts its price. A recovery might take some time, and for a true rebound, the charts need to indicate a strong buying zone marked by increased trading volumes.
LTC chart on the H4 timeframe
Aave (AAVE)
Currently, AAVE is on an upward trajectory. After hitting a low of $51.46 on September 11, AAVE's price surged by 20% over the week. It's now hovering around the resistance zone of $64.3-$66.6.
The future rise of altcoins, including AAVE, hinges on Bitcoin's potential growth. If this trend holds, AAVE might challenge the psychological level of $70, with traders closely watching for market reactions at this point.
On the AAVE chart, the prevailing support zone lies between $55.9-$58.3. Just below that is another buyer's range from $50.35-$52.70. The possibility of reaching a new low at the $49 mark seems improbable for now.
AAVE chart on the H4 timeframe
Later tonight, we anticipate the Federal Reserve's interest rate announcement and the FOMC's inflation forecast for the U.S. Historically, such events have led to increased volatility in the markets, and we anticipate the same today. Therefore, it may be wise to either refrain from active trading or significantly reduce your trading risk.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNcrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
