Cryptocurrency

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

Disclaimer: The findings of the next evaluation are the only real 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. This is definitely 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 won’t be in but.

LTC- 1 Day Chart

Source: LTC/USDT on TradingView

The every day chart confirmed Litecoin to be in a downtrend from mid-November on the upper timeframes. This holds true for many 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 in this space, and the worth was in a position to break decrease in late April.

In the previous two weeks, the $80 mark has additionally been breached and retested as resistance as properly. Further south, the $52.5 and $40 levels are prone to act as assist levels in the weeks to come back.

The market construction is decisively bearish on the upper timeframes, and the levels to watch out for are $52 and $80 as assist and resistance levels, respectively.

Rationale

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

Source: LTC/USDT on TradingView

The RSI on the every day dropped to 23 to indicate excessive bearish momentum. A reduction bounce could happen in the following few days, however the development would stay bearish general. Not solely has the worth shaped a collection of decrease highs and decrease lows, but in addition, the momentum indicators confirmed vendor dominance.

The RSI has stayed under impartial 50 on the every day chart since early April, and the Awesome Oscillator has been under the zero line too. Moreover, the OBV has been steadily declining, a discovering that’s in line with the bearish development.

The Chaikin Money Flow dropped again under the -0.05 mark in current days, in response to the extraordinary promoting stress.

Conclusion

The indicators confirmed the momentum to be in the arms of the bears, and the market construction was additionally bearish. Even if Litecoin can climb previous the $80 mark, the development would nonetheless be in favor of the bears. Resistance lies additional increased in the $100 space as properly, and shopping for alternatives won’t come up till these resistances are damaged.


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