Support levels can be extremely important. They are essential when they hold, but they are almost more important when they do not. By taking a look at Stellar (XLM) and Litecoin (LTC), you will notice this idea very much indeed on these charts.
- High: $ 0.20351
- Low: $ 0.19719
- 24-hour volume: $ 66.95 M
- 7-day percentage change: – 26.11%
Stellar (XLM) had been a clear outperformer during the July rebound that took hold in the complex cryptocurrency and pushed several coins to test their moving averages 200 days simple.
So we expected to see Stellar (XLM) show some sort of loyalty to the 50-day moving average as support, especially since it came into confluence with a high-level price support from the previous range.
This type of combination is often difficult to break, especially when seen in a relative strength market. However, in this case, it does not seem to have been difficult to violate at all.
Stellar (XLM) was cut directly through it.
We are now seeing this chart near a critical support test, and opening up the potential for another bearish technical break if that support does not hold up as well. The key levels to be observed at this point are aligned to $ 0.20, $ 0.18 and $ 0.17.
- High: $ 64,223
- Low: $ 60,433
- 24-hour volume: $ 308,51M
- 7-day percentage change: -18.61 %
It has been a very difficult turn for Litecoin (LTC) in the last days, but there are not too many coins for which the same statement can not be made.
Litecoin (LTC) broke down along with the rest of the past week after finding strong resistance to a 50-day moving average strongly down 50 days. This triggered a break below the $ 80 level, which also represented a downhill support level, and from there the decline of the falls started.
At this point, the negative side that we have seen in the last 48 hours is becoming persistent and quite dramatic that the only bullish factor that this chart has had in its favor is beginning to dissolve: the bullish divergence found in the measure RSI of 14 days compared to the minimum of the pin marked on the cards at the end of June.
If the moment persists, look for the next big challenge to support the $ 55 level.
That said, LTC is perhaps at a more advanced point in the downtrend and could trigger a vicious rebound if the weak pool- delivered HODLERS has already sold out.
Happy Trading ~
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer
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Charts courtesy of tradingview.com