Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be taken as funding recommendation
Litecoin climbed to a excessive of $240 in late-February, but it surely has since slid down the charts following Bitcoin’s personal losses over the identical time interval. The truth is, its most up-to-date, now-closed buying and selling session noticed LTC stand on the cusp of $180, able to fall even decrease.
Litecoin 12-hour chart
Supply: LTC/USD on TradingView
A worrisome improvement for the bulls was LTC slipping again below the $180-level. It was rejected at this worth early in January, and the market bulls labored to drive the worth previous this level in February. Nonetheless, a sustained transfer previous $230 wouldn’t materialize, and sellers have dominated since.
The $190-$200 vary acted as an space of provide, whereas the $163-level acted as assist for LTC over the previous couple of weeks. So far as its long-term outlook is anxious, LTC gave the impression to be in a part of consolidation below the $200-level. There have been indicators of a shift in momentum even on longer timeframes, and dropping below $163 would possible take LTC to $140.
Reasoning
The 4-hour, 12-hour, and every day timeframes urged that momentum was on the aspect of the market’s bears. The RSI moved beneath 50 whereas the Superior Oscillator was additionally in bearish territory. Simply as importantly, the OBV famous that promoting quantity outweighed shopping for quantity over the previous two weeks.
The $190-area has acted as resistance twice in succession, whereas $163 has served as assist. Therefore, these might be highlighted as areas of curiosity for LTC over the following few days. On both aspect of those ranges lay the $150 and $200-levels, each of that are additionally noteworthy.
These ranges (in yellow) have been plotted utilizing Gann’s rule of eighths and highlighted some ranges the place LTC can discover assist and resistance throughout the $120-$180 vary.
Bitcoin is more likely to have a powerful affect on LTC, and within the long-term, Bitcoin can be on a powerful run upwards. One other dip to $45k may see LTC revisit $150 and even decrease, nonetheless, and these dips needs to be thought of as shopping for alternatives.
Over the following few days, the $163-level is more likely to be examined.
Conclusion
Taking a short-position for something aside from an intraday commerce is ill-advised. A dip to $163 or $150 needs to be assessed for a show of power from bulls earlier than shopping for LTC.
