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Litecoin has formed lower highs and lower lows to trade within a downtrend channel in the daily time frame. The price also seems to be consolidating within a declining wedge, since it does not appear that the area of interest of the middle channel may have exploded recently.
The price is approaching the wedge peak, so a breakout could be due anytime soon. A break below the support could lead to a break below the bottom of the channel, exposing the litecoin to longer drops. On the other hand, a break beyond the wedge resistance could mean a test of the central channel's area of interest at $ 80 or a resistance pass at $ 120.
This top of the channel aligns with the 200 SMA dynamic inflection point, adding to its strength like a ceiling. The 100 SMA is below the 200 long-term SMA, so the path of least resistance is downward. This means that the selloff is likely to resume rather than the other way around. The 100 SMA could also withhold short-term resistance.
RSI is pointing down to signal that sellers have the upper hand and could reduce Litecoin from here. Even the Stochastic is going lower, but in oversold territory, so there is a good chance of taking profit at these levels. Obviously the oscillators still have to stop before indicating a return to bullish pressure.
Litecoin and its peers are on unstable ground these days as the recent declines have attracted even more bears to join. Spotlight on SEC's decision to delay the decision on SolidX bitcoin ETF applications did not help, so market observers should wait until September to get good positive news.
For the time being, downward vibrations may persist unless there is a positive catalyst that could revive optimism. In the previous month, institutional interest was the main engine for rallies, so any updating in this sense could stimulate gains.
