Bulls couldn’t take control of the market, and after touching a high of $93.46 on 23 May, the LTC/USD pair started moving in a bearish trend, touching a low of $82.60 today in the early Asian trading session.
On the hourly chart:
- There is a black Marubozu candle below the $93.46 handle. It signifies the start of a bearish phase in the market.
- Litecoin price is trading below its 100-hour simple moving average, 200-hour exponential moving average, and its pivot level of $84.49.
- The relative strength index is at 38.28, indicating weak demand for Litecoin and a shift towards the bearish phase in the markets.
- Litecoin remains below most of the moving averages, which are giving a bearish signal at current market levels of $84.49.
- Some of the technical indicators are neutral.
- The average true range indicates low market volatility.
Litecoin Bullish Reversal Is Seen above $79.64
On the daily chart:
- Litecoin keeps moving in a bearish trend after its recent decline below the $90.00 level.
- Litecoin to USD exchange rate ranges below $90.00 with more downsides located at $82 and $80 levels.
- We can see a bearish trend reversal pattern with 20- and 50-period adaptive moving averages.
Litecoin price failed to make an upside break above the $95.00 resistance level, and we can see a continuous decline as the LTC price started a downside correction below the $90.00 level.
Litecoin is now seen consolidating above the $84.00 level, and a downside break may bring it to the $80.00 support level.
LTCUSD is about to break its classic support level of $84.11 and Fibonacci support level of $84.39, after which the path towards $80 will get cleared.
Litecoin faces resistance at $87.48, which is a pivot point, and at $88.13, which is a 1- day RSI at 50.
The Week Ahead
Litecoin price continues to correct lower against the US Dollar, and a strong bearish momentum is visible, with further downsides at $82 and $80 levels.
Most technical indicators signal a bearish sentiment in the market.
Litecoin price should stay above the important support level of $79.48, which is a 14-3 day raw stochastic at 20, and at $79.66, at which the price crosses the 9-day moving average.
The weekly projection for Litecoin price is $80, with a consolidation zone of $82.
The short-term outlook for Litecoin has turned mildly bearish, the medium-term outlook is bearish, and the long-term outlook is neutral at present market conditions.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.