Bulls couldn't keep control of the market last week, and after touching a high of $103.38 on 18 April, the price declined against the US Dollar, touching a low of $89.06 today in the early Asian trading session.
There is a bearish engulfing pattern below the $103.38 handle on the H1 timeframe. It signifies the end of a bullish phase and the start of a bearish phase in the market.
The MACD has crossed down its moving average in the daily timeframe. Also, Litecoin is trading below its 100-hour simple moving average, 200-hour exponential moving average, and pivot level of $91.04.
The relative strength index is at 30.14, indicating very weak demand for Litecoin and the continuation of the selling pressure in the markets.
Litecoin remains below all of the moving averages, which are giving a bearish signal at current market levels of $90.37.
The STOCHRSI is signaling overbought market conditions, which means that the price is expected to decline in the short term.
The short-term outlook for Litecoin has turned strongly bearish.
- All technical indicators a bearish
- Litecoin bearish reversal is seen below the $103.38 level.
- The RSI is bearish.
- The average true range indicates low market volatility.
Litecoin Bearish Reversal Is Seen Below $103.38
Litecoin continues to move down after falling below the $95 handle, with further support levels located at $88 and $85.
20- and 50-day adaptive moving averages formed a bearish reversal pattern.
LTCUSD is about to break its classic support level of 90.10 and Fibonacci support level of 90.80, after which the path towards $85 will get cleared.
Litecoin faces resistance at $93.58, which is a 3-10 daily MACD, and at $95.36, at which the price crosses the 9-day moving average.
The Week Ahead
Litecoin has entered a consolidation zone, and a further break below the $90 barrier is expected.
Most technical indicators are signaling a bearish sentiment in the market.
Litecoin should stay above the important support level of $87.03, which is a 38.2% retracement from a 4-week low, and at $85.44, which is a 50% retracement from 13-week High/Low.
The short-term outlook for Litecoin has turned strongly bearish, the medium-term outlook is bearish, and the long-term outlook is neutral at present market conditions.
The weekly projection is $85, with a consolidation zone of $88.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
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 making your money go further 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.
