Cryptocurrency

Litecoin [LTC]: Your take-profit targets can be a revisit of this area

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

Coinglass data confirmed $364 million price of liquidations over the previous 24 hours. This got here within the wake of a 7% drop in Bitcoin’s [BTC] worth inside the previous day.

Litecoin [LTC] adopted within the footsteps of Bitcoin, alongside the remainder of the altcoin market. The longer-term view for Litecoin was to search for alternatives inside the vary LTC established over the previous three months.

LTC- 1-Day Chart

Source: LTC/USDT on TradingView

The vary (yellow) that Litecoin established in May and June remained unbroken. Moreover, the mid-point of the vary lay at $54. At the time of writing, LTC appeared to slide beneath the midpoint and towards the assist at $52. This assist degree was solely a short-term one, and Litecoin might simply plunge additional.

A day by day session shut beneath the $54 mark would open up a shorting alternative. The quick positions can set their cease losses simply above the $55 mark. Take-profit targets would be a revisit of the $42-$44 area.

Rationale

Litecoin slips beneath mid-range as the bears wake from their slumber

Source: LTC/USDT on TradingView

The Relative Strength Index (RSI) on the day by day chart has oscillated from 60 to 40 over the previous two months. This indicated the shortage of a robust pattern behind Litecoin on the day by day timeframe. Given the formation of the vary, this discovering was coherent. It additionally supported the concept that a escape from the vary was not but seen.

The Stochastic RSI shaped a bearish crossover in overbought territory and plunged decrease. Combined with the RSI’s fall beneath impartial 50, the momentum behind LTC has flipped to bearish.

The On-Balance Volume (OBV) made some positive factors in August however was unable to pierce a resistance degree from May. It confronted rejection at this degree as soon as extra and fell decrease. Sellers have been dominant as soon as extra and additional losses out there have been possible.

Conclusion

A shopping for alternative would come up on a revisit to the $42-$44 area. The risk-reward would be a lot better at that time for longs. In the subsequent week, Litecoin has a bearish bias if it can not climb again above the $54 mark.

Bitcoin was not notably robust both, however it did have assist close to the $18.5k and $17.8k ranges. A bounce for Bitcoin might see some aid for Litecoin as effectively.

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