Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
Earlier this week, the MimbleWimble improve was announced for Litecoin and the worth had zero bullish response to this information. That is truly a typical characteristic of bearish markets, the place worry strikes the worth and excellent news barely leaves a hint because it comes and goes. The bearish construction of Litecoin has been in place for almost eight months now, and the underside won’t be in but.
LTC- 1 Day Chart
The each day chart confirmed Litecoin to be in a downtrend from mid-November on the upper timeframes. This holds true for many altcoins throughout the market. In February and March, the $100 space was held as assist for LTC, however the promoting stress of April weakened the bids in this space, and the worth was in a position to break decrease in late April.
Previously two weeks, the $80 mark has additionally been breached and retested as resistance as nicely. Additional south, the $52.5 and $40 levels are more likely to act as assist levels in the weeks to come back.
The market construction is decisively bearish on the upper timeframes, and the levels to watch out for are $52 and $80 as assist and resistance levels, respectively.
The RSI on the each day dropped to 23 to indicate excessive bearish momentum. A reduction bounce could happen in the following few days, however the development would stay bearish total. Not solely has the worth shaped a sequence of decrease highs and decrease lows, but in addition, the momentum indicators confirmed vendor dominance.
The RSI has stayed beneath impartial 50 on the each day chart since early April, and the Superior Oscillator has been beneath the zero line too. Furthermore, the OBV has been steadily declining, a discovering that’s in line with the bearish development.
The Chaikin Cash Circulation dropped again beneath the -0.05 mark in current days, in response to the extreme promoting stress.
The indications confirmed the momentum to be in the arms of the bears, and the market construction was additionally bearish. Even when Litecoin can climb previous the $80 mark, the development would nonetheless be in favor of the bears. Resistance lies additional increased in the $100 space as nicely, and shopping for alternatives won’t come up till these resistances are damaged.