Bears Take Control Despite Recent Litecoin Halving

ADS


Litecoin has seen a sharp 5% price decline over the past 24 hours, and it’s currently trading at around $86.53. The cryptocurrency is down 11.82% on the week, while LTC lost around 20 percent of its value during the last 30 days. 

The Litecoin halving failed to produce any increases, confirming what the majority believed – that it had already been priced in during the run-up to the halving.

However, it’s worth noting that it has only been a few days since the halving took place, and it will likely take more time for the supply-and-demand dynamics to kick in and potentially trigger some sort of price increase. 

Looking at the LTC/USD 1-day chart:

  • Since our previous Litecoin price analysis, Litecoin continued to move as expected after rolling over at the upper boundary of the symmetrical triangle. Litecoin went on to collapse beneath this triangle today as the bears took control.
  • From above: The nearest level of resistance lies at $90. Above this, higher resistance is located at $95, $97, and $100. The resistance at $100 is significant due to the 100-day EMA being located there. 
  • From below: Support now lies at $84.77, which contains the .786 Fib retracement. Beneath this, further support is found at $80 and $77.45 (the .886 Fib retracement). If the sellers drag the price below $75, we can expect to see support at $70, $67.75, $63, and $60.
  • The trading volume still remains below average and very low.
  • The RSI recently dipped well below 50 as the bears took control of the market. The Stochastic RSI’s bearish crossover signal marked the recent move lower.

ltcusd_aug9-min

Looking at the LTC/BTC 1-day chart: 

  • Trading against Bitcoin, LTC has collapsed through the support at 0.008244 BTC to drop further to 0.007209 BTC. This latest price decrease brings LTC to a low not seen since mid-December 2018.
  • From above: If the market can start to rebound, resistance will be found at 0.0075 BTC, 0.008 BTC, and 0.008244 BTC. This would be followed by further resistance at 0.0085 BTC, 0.009 BTC, 0.009415 BTC, 0.0097 BTC, and 0.01 BTC.
  • From below: The nearest level of support is located at 0.007 BTC. This is followed by some strong support at the downside 1.414 Fibonacci extension at 0.006946 BTC. This combined level of support allowed the market to rebound in December 2018 and is expected to remain strong moving forward.
  • The trading volume has increased during this latest round of selling.
  • The RSI recently reached extreme oversold territory, which could be a sign that the sellers are reaching exhaustion. It is important to note, however, that the RSI can remain oversold for extended periods of time. This sentiment is shared by the Stochastic RSI as we await a bullish crossover to signal a move higher.

ltcbtc_aug9-min

Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.



Source link Crypto Potato

ADS

Be the first to comment

Leave a Reply

Your email address will not be published.


*