Litecoin, the seventh-largest cryptocurrency available in the market, has been consolidating inside the vary of $42-$45 for 2 weeks now, with the altcoin recording sideways value motion since. Regardless of a number of breakout makes an attempt, Litecoin has famous a number of rejections, and a take a look at the charts would counsel that the bears are right here to remain.
Litecoin 1-Day Chart
Supply: LTC/USD on TradingView
A descending triangle sample was taking form on Litecoin’s day by day chart. The completion of this sample may probably result in a bearish breakout within the long-term. This was additionally supported by the location of the day by day transferring averages. The 50 DMA [Pink] famous a minor upswing, which initially gave the impression to be reducing the gauge with the 200 DMA [Purple] and therefore, a bullish section for the coin.
Nevertheless, the prospect of a golden cross diminished as the 2 day by day transferring averages had been transferring parallel to one another, which means a possible bearish section could possibly be forward. Along with the 200 DMA which hovered above the Litecoin value candles, the 50 DMA additionally climbed above candlesticks on 13 Might because it continued to withstand upward motion. This additional validated the presence of the bears.
Supply: LTC/USD on TradingView
Taking the technical indicators into consideration, it was discovered that they too pointed in the direction of a bearish section. The MACD, as an example, slid beneath the sign line, depicting the bears taking cost. The Relative Energy Index [RSI] was additionally beneath the 50-median impartial line. This pointed to a sentiment of promote stress among the many buyers within the coin market.
Case 1
The descending channel sample taking form over a interval of greater than three weeks, the location of day by day transferring averages, and the indications, all pointed to a bearish breakout. If this materializes, the coin may discover itself retesting goal factors at $35.68 and $30.63, ranges which registered a excessive buying and selling exercise, based on the VPVR indicator. If the downward development continues, it may additionally discover itself retracing to the December ’18 lows close to $22.76.
Case 2
Whereas a case for development reversal seems to be bleak, Litecoin’s value candles had been resisted at factors $51.16 and $59.22, ranges not seen since March second week.
Correlation
Supply: Coin Metrics
Litecoin is the “silver to Bitcoin’s gold.” This adage holds true as the 2 cash not solely share the identical codebase, but additionally exhibit largely comparable value actions, rising and falling in tandem. On the time of writing, the BTC-LTC correlation coefficient stood at a excessive of 0.86. This was indicative of the truth that Bitcoin’s upward value motion would have the ability to catapult Litecoin’s value to breach vital resistance factors.
Conclusion
The hooked up charts pointed in the direction of a bearish breakout which may drive Litecoin to take a plunge all the way in which all the way down to its help factors at $35.68, $30.63 and $22.76, whereas its value confronted resistance at $51.16 and $59.22
