Technical analysis: Litecoin is not going to grow, we continue to short

The rollback period for most altcoins after the fall of the stock market seems to have ended. Almost all coins now gradually returning to the downtrend, which inevitably drops the crypt to the new support lines. While Bitcoin was not able to consolidate above $ 4,000, so the most popular violas will continue to decline.

Litecoin is also no exception. At the moment the coin is trading around 30.5 per dollar. For last days it fell nearly 4 percent, while the LTC market capitalization fell below $ 400 million. Recall that at the peak bullrun this rate Litecoin has reached $ 2.2 billion.

Technical analysis

At a scale of 1-hourly chart, the bulls are relinquishing their positions — the price of Litecoin is reduced after a 10-day period during which buyers could keep the asset is above $ 30. At the moment the nearest support level for cryptocurrency is the line $ 27.

Image source — AMBCrypto

While near the horizontal resistance reported in the area of $ 35. So LTC could reach this milestone, you will first need to overcome the downtrend line, which currently is very close to the market price of the asset.

Technical indicator RSI while hovering around the average level, he previously rebounded from oversold zone. This means that the market has reached equilibrium in terms of supply and demand, so while traders do not seek to take action.

1-daily chart the situation is more clear — Litecoin is still in a downtrend. Cryptocurrency safest place to short, as it signals a change in market sentiment yet. When you rise above 35 dollars it makes sense to open long with target at levels 40, 50 and 80 dollars.

Image source — AMBCrypto

Technical indicators on a scale of 1-daily chart gives mixed signals, so to use them only when decision-making is impractical.


Leave a Reply

Your email address will not be published. Required fields are marked *