Litecoin [LTC] Technical Analysis: Bear’s presence sends token into a downward spiral
Litecoin [LTC] seems to have fallen into the bear’s pit along with top coins like Bitcoin [BTC], Ethereum [ETH] and XRP and has been trying to climb back up ever since, but to no avail. Litecoin has taken a combo-attack to the gut as a result and is performing far worse than other coins, but the community is optimistic about the recent Core 0.17 release and is hoping for a slight bull run if not a trend reversal.
As per the charts, the sideways trend is persistent and getting worse by the day, showing the bear’s dominance.
The trend line is very prominently showing a downtrend with the long-term support at $51.33. The immediate resistance is at $53.08, and for a trend reversal to occur, the price has to break the long-term resistance at$53.92. However, the bear seems to have a tight grasp of the market.
The candles are well below the average line and are dipping towards the lower Bollinger Band indicating the dominance of the bear.
MACD line is on the verge of hugging the signal line on a downward trend, which is again, a bearish sign. The MACD histogram represents the same, with the red spikes taking over the market, indicating a downtrend.
Stochastic indicator, like the MACD lines, are hugging each other in a downward spiral after a cross-over showing the control of the bear market.
For LTC to see a trend reversal, the price has to first cross the immediate resistance at $68.20 and then cross over the strong resistance set up at $98.31. The support, however, is set at $50.55.
The Parabolic SAR markers are well above the candles indicating a bearish pressure.
The RSI shows sideways bear market has caused the selling pressure to dominate pushing the buyers out of the market. Hence the obvious conclusion that the market is oversold.
The bear market’s dominance has caused all the altcoins to travel sideways. The market momentum is picking up after a bearish lull as indicated by the Awesome Indicator.
In the 1-hour chart, both MACD and the Stochastic indicators show that the bear continues to have dominance over the market. Similarly, in the one-day chart, the Awesome Indicator and the RSI show massive bearish trends with no signs of upward movement. This could quite possibly continue for a long time.
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