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The extremely successful Litecoin summit is officially over but surprisingly the project is still struggling to shake off bearish traders. Despite a series of new announcements including the highly anticipated launch of Lite.IM and the support of the Gemini encryption exchange of Winklevoss Twins, LTC ended yesterday with a loss of 4.55%.
In the last 24 hours the cryptography market has dropped back below $ 200 billion and the headline, Bitcoin (BTC), is also falling to remain between $ 6,200- $ 6,300. It is not uncommon that the value of Litecoin largely depends on Bitcoin's market performance at any time and at the moment this is the most likely cause of LTC's inhibited progress.
Diving in the LTC / BTC analysis described in the video above, we can see that Litecoin was indeed quite bullish, with a promising banner that reached consolidation. However, in the previous trade much effort had been made to reduce the value of the LTC, and a few hours after the video analysis, LTC lowered with the support of the pennant and found itself at $ 50. it could also be attributed to the sudden drop in Bitcoin below $ 6,300 on Monday, after the global cryptography market started losing capital.
Meeting with LTC now, we can see that the general trend continues to shift sideways, but the good fell to maximum support at $ 53 and is now inside the support area, with the next point backing down to $ 45.
Looking at the indicators, we can see immediately that the recent decline in the pennant was a temporary market movement, where the asset is plunged into the oversold region of the RSI, but then it quickly recovered in the index channel. On the CMF, the asset is still rising, but a fall below the zero line will be a good anticipation of a downside reversal if sales pressure will pick up again.
On the Ichimoku marker, however, we have an early bear warning, where the candles have fallen through the support kumo accompanied by a bearish T / K crossbreed. It is worth mentioning, however, that candles are still within the kumo range and may still pass through it if the short-term buying momentum returns in the following week. This will have to be carefully observed to see if the candles close under this cloud or begin to rise through it.
Reviewing the previous analysis, it is also worth noting that the recent fall further solidifies the downward resistance of a falling wedge that includes the broader price action.
Now that LTC is closely monitoring this resistance, we can see that there will be further pressure against bullish traders to overcome this level. However, it is a positive sign that LTC is following the sideways path and it is hoped that the current (green) support channel will promote the asset long enough to allow buyers to get out of this downward model soon.
Alternatively, we could see Litecoin continue further towards the consolidation point before overturning, which these models are known to do.
For now, determining price targets will be difficult as it will heavily depend on Bitcoin's movements next week. Instead, we will take a look at the main areas of resistance and support in progress.
Key support: $ 46
Key resistance: The descending line could be retested anywhere between $ 55 and $ 47.