Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
Earlier this week, the MimbleWimble improve was announced for Litecoin and the worth had zero bullish response to this information. That is really a typical characteristic of bearish markets, the place concern strikes the worth and excellent news barely leaves a hint because it comes and goes. The bearish construction of Litecoin has been in place for almost eight months now, and the underside won’t be in but.
LTC- 1 Day Chart
The each day chart confirmed Litecoin to be in a downtrend from mid-November on the upper timeframes. This holds true for a lot of altcoins throughout the market. In February and March, the $100 space was held as assist for LTC, however the promoting strain of April weakened the bids on this space, and the worth was capable of break decrease in late April.
Previously two weeks, the $80 mark has additionally been breached and retested as resistance as effectively. Additional south, the $52.5 and $40 ranges are more likely to act as assist ranges within the weeks to return.
The market construction is decisively bearish on the upper timeframes, and the degrees to be careful for are $52 and $80 as assist and resistance ranges, respectively.
The RSI on the each day dropped to 23 to indicate excessive bearish momentum. A aid bounce might happen within the subsequent few days, however the development would stay bearish total. Not solely has the worth fashioned a sequence of decrease highs and decrease lows, but additionally, the momentum indicators confirmed vendor dominance.
The RSI has stayed under impartial 50 on the each day chart since early April, and the Superior Oscillator has been under the zero line too. Furthermore, the OBV has been steadily declining, a discovering that’s according to the bearish development.
The Chaikin Cash Stream dropped again under the -0.05 mark in latest days, in response to the extreme promoting strain.
The symptoms confirmed the momentum to be within the arms of the bears, and the market construction was additionally bearish. Even when Litecoin can climb previous the $80 mark, the development would nonetheless be in favor of the bears. Resistance lies additional larger within the $100 space as effectively, and shopping for alternatives won’t come up till these resistances are damaged.