Bulls could not take control of the market last week, and after touching a high of $87.83 on 06 May, the price started to correct lower against the US dollar, touching a low of $77.17 on 10 May.
There is a hanging man pattern below the $87.83 handle on the H1 timeframe. It signifies the end of a bullish phase and the start of a bearish phase in the market.
The Litecoin price is back under the pivot point in the daily timeframe.
Also, Litecoin price is trading below its 100-hour simple moving average and 200-hour exponential moving average and just above its pivot level of $80.05.
The relative strength index is at 48.97, indicating a neural demand for Litecoin and the shift towards the consolidation zone in the markets.
Litecoin remains below most of the moving averages, which is a bearish signal at the current market level of $80.33.
The short-term outlook for Litecoin has turned mildly bearish.
- Some of the technical indicators are bearish.
- Litecoin price bearish reversal is seen below the $87.83 level.
- The RSI is neutral.
- The average true range indicates low market volatility.
Litecoin Bearish Reversal is seen below $87.83
Litecoin to USD exchange rate is ranging near a new record 1-month low. Litecoin continues to move in a mild bearish momentum after its recent decline below the $85.00 level. Litecoin faces resistance at $84.55, at which the price crosses the 9-day moving average, and at $84.77, which is a 14-3 day raw stochastic at 50.
As the Litecoin price is now moving into a narrow range, we are expecting some bearish moves after the price crosses the $80.00 handle.
The ADX is signalling neutral market conditions, which means that the price is expected to move in a narrow range in the short term. Some of the technical indicators are also neutral.
LTCUSD is about to break its classic support level of $79.47 and Fibonacci resistance level of $79.90, after which the path towards $75 will get cleared.
The Week Ahead
Litecoin has entered a consolidation zone above the $76.00 handle.
Most technical indicators are signalling a bearish sentiment in the market.
Litecoin should stay above the important support level of $72.87, which is a 50% retracement from the 52-week high/low, and at $75.61, which is a 1-month low.
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.
The weekly projection is $75, with a consolidation zone of $80.
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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.