Altcoins

Going long on Litecoin might be a good idea if it touches these lows

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

Candlewicks on every day charts into an space of former provide, presently demand zone can see a bullish impulse transfer away from the liquidity pocket. Such a situation may very well be brewing for Litecoin on the every day charts. Regardless of the concern within the crypto markets in current weeks, and though the general development for the coin was bearish since November, a area on the charts offered itself as a spot the place bulls might bid closely at.

LTC- 1D

Litecoin- continued slide southward, or a range formation? In either case, look to sell in this area

Supply: LTC/USDT on TradingView

The downtrend has been relentless since mid-November. 4 months in and the development was but to be damaged. On the every day chart, the latest of the decrease highs lay at $116, and bulls would want to push previous this stage to interrupt the bearish market construction.

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In late February, information of a Russian invasion into Ukraine broke out and created panic within the markets, and the value noticed a nasty wick to the draw back that reached $90 to type a swing low.

It was attainable that the value would descend to those lows as soon as extra, looking for liquidity. Late shorters is also trapped just below $90, which might create gas ought to the value reverse and shoot towards $120.

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Rationale

Litecoin- continued slide southward, or a range formation? In either case, look to sell in this area

Supply: LTC/USDT on TradingView

Each the 21 and 55 SMAs (orange and inexperienced respectively) had supplied resistance to the value lately, and LTC has crushed the 21 SMA. Nevertheless, there was a confluence of resistance from transferring averages and former demand, now provide zones simply above $109, at $113.

The RSI stood at 50.69 and confirmed that no actual development was behind Litecoin prior to now two or three weeks. The OBV has been trending steadily downward, and promoting stress has been unwavering. The CVD confirmed some shopping for stress in current days, however this was possible not sufficient to flip the downtrend by itself.

The Aroon indicator additionally confirmed that the previous 4 months have been dominated by downtrends, with minor retracements thrown into the combination.

Conclusion

If the $90 lows are revisited, a reversal candle or bullish divergence can be utilized to set off an entry to an extended place focusing on $120 and presumably $145. Nevertheless, the development was bearish. There was a touch that value might vary between $90 and $144 within the months to come- however one other rejection at $140 is required to make that conclusion.

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