Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
Earlier this week, the MimbleWimble improve was introduced for Litecoin and the value had zero bullish response to this information. This is definitely a typical characteristic of bearish markets, the place worry strikes the value and excellent news barely leaves a hint because it comes and goes. The bearish construction of Litecoin has been in place for practically eight months now, and the underside won’t be in but.
LTC 1 Day Chart
The day by day chart confirmed Litecoin to be in a downtrend from mid-November on the upper timeframes. This holds true for many 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 in this space, and the value was in a position to break decrease in late April.
In the previous two weeks, the $80 mark has additionally been breached and retested as resistance as effectively. Further south, the $52.5 and $40 levels are prone to act as assist levels in the weeks to come back.
The market construction is decisively bearish on the upper timeframes, and the levels to watch out for are $52 and $80 as assist and resistance levels, respectively.
The RSI on the day by day dropped to 23 to indicate excessive bearish momentum. A aid bounce could happen in the following few days, however the development would stay bearish total. Not solely has the value fashioned a collection of decrease highs and decrease lows, but in addition, the momentum indicators confirmed vendor dominance.
The RSI has stayed under impartial 50 on the day by day chart since early April, and the Awesome Oscillator has been under the zero line too. Moreover, the OBV has been steadily declining, a discovering that’s in line with the bearish development.
The Chaikin Money Flow dropped again under the -0.05 mark in latest days, in response to the extreme promoting strain.
The indicators confirmed the momentum to be in the fingers of the bears, and the market construction was additionally bearish. Even if Litecoin can climb previous the $80 mark, the development would nonetheless be in favor of the bears. Resistance lies additional larger in the $100 space as effectively, and shopping for alternatives won’t come up till these resistances are damaged.