Cryptocurrency markets got here underneath broad promoting stress on Monday, with the area’s combination market capitalisation shedding since over $150B to drop from greater than $2.3T to present ranges of barely greater than $2.1T.
The deterioration in sentiment got here as broader monetary market threat urge for food got here underneath stress. Omicron worries are preserving traders cautious into the year-end as an infection charges spike in Europe and nations there transfer to curb transmission by introducing new restrictions.
Litecoin (LTC/USD) was unsurprisingly not resistant to the most recent crypto market downturn, dropping again from Sunday’s excessive above $160 per coin to present ranges beneath $150. LTC/USD costs have for now discovered assist within the type of the early December lows round $142, which sit simply above the late September lows slightly below $140. That marks a close to
While broader crypto market promoting was the key catalyst for LTC’s most up-to-date drop, technical promoting has additionally contributed. LTC/USD bumped into resistance within the type of a downtrend that acted as assist throughout November however has extra lately switched to performing as resistance in mid-December.
If the cryptocurrency was in a position to break to the north of this downtrend, then a retest of final week’s highs round $170 could be on the playing cards. A break above that would open the door to a transfer in the direction of the late November lows round $183, which at present roughly coincides with LTC’s 21-day moving average.
Bearish Break on the Playing cards
Since Litecoin’s sharp drop from above $200 firstly of December, the cryptocurrency has cast out a $140-$170ish vary, however is now more and more threatening a bearish break. Momentum indicators definitely don’t appear to be ruling out the potential of a break decrease.
On Monday, the 12-period (on the four-hour candlesticks) exponential transferring common (EMA) dropped under the 26-period EMA, sending the Shifting Common Convergence Divergence (MACD) indicator into unfavourable territory. Quick-term speculators typically see the MACD switching unfavourable as a bearish short-term sign.
In the meantime, the 14-period (additionally on the four-hour candlesticks) Relative Energy Index (RSI) stays comfortably above oversold ranges (which might be under 30) at above 40, implying that there’s loads of room for promoting stress to construct with out circumstances changing into overstretched.
A unfavourable break would open the door to a transfer decrease in LTC/USD in the direction of the summer time lows round $105, which might mark an extra close to 30% drawdown from present ranges.
This article was initially posted on FX Empire