Altcoins

Litecoin [LTC] investors could watch out for these levels in weeks ahead

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation

Earlier this week, the MimbleWimble improve was announced for Litecoin and the worth had zero bullish response to this information. That is really a standard characteristic of bearish markets, the place concern strikes the worth and excellent news barely leaves a hint because it comes and goes. The bearish construction of Litecoin has been in place for almost eight months now, and the underside may not be in but.

LTC- 1 Day Chart

Litecoin continues to trend downward as buyers dried up at the turn of the year

Supply: LTC/USDT on TradingView

The day by day chart confirmed Litecoin to be in a downtrend from mid-November on the upper timeframes. This holds true for a lot of altcoins throughout the market. In February and March, the $100 space was held as assist for LTC, however the promoting stress of April weakened the bids on this space, and the worth was capable of break decrease in late April.

Prior to now two weeks, the $80 mark has additionally been breached and retested as resistance as properly. Additional south, the $52.5 and $40 ranges are prone to act as assist ranges within the weeks to come back.

The market construction is decisively bearish on the upper timeframes, and the degrees to be careful for are $52 and $80 as assist and resistance ranges, respectively.

Rationale

Litecoin continues to trend downward as buyers dried up at the turn of the year

Supply: LTC/USDT on TradingView

The RSI on the day by day dropped to 23 to indicate excessive bearish momentum. A aid bounce may happen within the subsequent few days, however the development would stay bearish general. Not solely has the worth fashioned a sequence of decrease highs and decrease lows, but in addition, the momentum indicators confirmed vendor dominance.

The RSI has stayed beneath impartial 50 on the day by day chart since early April, and the Superior Oscillator has been beneath the zero line too. Furthermore, the OBV has been steadily declining, a discovering that’s in keeping with the bearish development.

The Chaikin Cash Movement dropped again beneath the -0.05 mark in latest days, in response to the extraordinary promoting stress.

Conclusion

The symptoms confirmed the momentum to be within the fingers of the bears, and the market construction was additionally bearish. Even when Litecoin can climb previous the $80 mark, the development would nonetheless be in favor of the bears. Resistance lies additional increased within the $100 space as properly, and shopping for alternatives may not come up till these resistances are damaged.



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