Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about 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 inside the vary LTC established over the previous three months.
LTC- 1-Day Chart
The vary (yellow) that Litecoin established in Could 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 degree was solely a short-term one, and Litecoin might simply plunge additional.
A each day session shut beneath the $54 mark would open up a shorting alternative. The brief 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 each day chart has oscillated from 60 to 40 over the previous two months. This indicated the shortage of a robust development behind Litecoin on the each day timeframe. Given the formation of the vary, this discovering was coherent. It additionally supported the concept that a get away from the vary was not but seen.
The Stochastic RSI fashioned 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 features in August however was unable to pierce a resistance degree from Could. It confronted rejection at this degree as soon as extra and fell decrease. Sellers have been dominant as soon as extra and additional losses available in the market have been seemingly.
A shopping for alternative would come up on a revisit to the $42-$44 space. The danger-reward can be a lot 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 robust both, however it did have assist close to the $18.5k and $17.8k ranges. A bounce for Bitcoin might see some aid for Litecoin as effectively.