Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.
Litecoin [LTC] adopted within the footsteps of Bitcoin, alongside the remainder of the altcoin market. The longer-term view for Litecoin was to search for alternatives throughout the vary LTC established over the previous three months.
LTC- 1-Day Chart
The vary (yellow) that Litecoin established in Might and June remained unbroken. Furthermore, the mid-point of the vary lay at $54. On the time of writing, LTC appeared to slide beneath the midpoint and towards the assist at $52. This assist stage was solely a short-term one, and Litecoin may simply plunge additional.
A day by day session shut beneath the $54 mark would open up a shorting alternative. The quick positions can set their cease losses simply above the $55 mark. Take-profit targets can be a revisit of the $42-$44 space.
The Relative Power Index (RSI) on the day by day chart has oscillated from 60 to 40 over the previous two months. This indicated the dearth of a powerful pattern behind Litecoin on the day by day timeframe. Given the formation of the vary, this discovering was coherent. It additionally supported the concept a get away from the vary was not but seen.
The Stochastic RSI shaped a bearish crossover in overbought territory and plunged decrease. Mixed with the RSI’s fall beneath impartial 50, the momentum behind LTC has flipped to bearish.
The On-Stability Quantity (OBV) made some good points in August however was unable to pierce a resistance stage from Might. It confronted rejection at this stage as soon as extra and fell decrease. Sellers had been dominant as soon as extra and additional losses available in the market had been doubtless.
A shopping for alternative would come up on a revisit to the $42-$44 space. The chance-reward can be significantly better at that time for longs. Within the subsequent week, Litecoin has a bearish bias if it cannot climb again above the $54 mark.
Bitcoin was not notably sturdy both, however it did have assist close to the $18.5k and $17.8k ranges. A bounce for Bitcoin may see some aid for Litecoin as nicely.