Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
A recent report highlighted that the every day transaction depend on the Litecoin community has been just about the identical as three months in the past, standing at simply over 100k. Equally, the energetic handle depend has additionally remained unchanged, hovering round 300k, the identical quantity it was again in February. This urged an absence of progress when it comes to customers and buyers for Litecoin. Mixed with the concern available in the market, the robust downtrend of Litecoin on the charts was quite unsurprising.
LTC- 1 Day Chart
On the every day chart, the worth has made a sequence of decrease highs and decrease lows going way back to late November. Actually, since November, no swing excessive of the downtrend (decrease highs) has been breached even as soon as, which urged robust bearish strain.
The $105-$115 space has been necessary up to now, for instance in July final 12 months, when the worth retested this space and rallied almost as excessive as $300. Previously few months, no important response was seen on this space besides in January, when the worth bounced from $110 to $140 however was shortly pushed decrease.
Previously few weeks, the psychological $100 stage has been misplaced to the bears. On decrease timeframes, the $75 stage had some significance. As a result of growth of a hidden bearish divergence (white) between value and momentum, the $75-$80 space can be utilized to enter quick positions.
Previously two weeks, the RSI has registered the next excessive (white) whereas the worth made a decrease excessive. This hidden bearish divergence is a sign of a continuation of the downtrend, and the $60-$66 space might be retested as soon as once more and probably damaged. The RSI has additionally been beneath the impartial 50 since April, to indicate an ongoing bearish development.
The Superior Oscillator was additionally effectively beneath the zero line to indicate robust downward momentum. The OBV slid decrease as effectively and was beneath the help it established in March. The Chaikin Cash Move climbed again above the -0.05 mark, however may quickly be pushed decrease.
The indications confirmed robust promoting strain and constant bearish momentum, whereas the worth charts additionally confirmed a bearish construction. The $75 space might be used to enter quick positions on the coin.