Litecoin (LTC) Technical Analysis: Battling To Return to $50, Bearish Continuation Likely
Litecoin bulls are under considerable pressure today as LTC finds itself back around the psychological $50 area. Last week’s announcement that Coingate has now become the official payment processor for Litecoin failed to attract new investment; leaving the asset searching for support as it continues to track inside a falling wedge pattern.
Will Litecoin be able to fight its way back on to the $50 level or will bears remain firmly in control this week? Let’s take a look.
Looking at the 1D LTC/USD chart right now we can see that the price action has recently fallen through the first support that we looked at in the video analysis. This was what we were expecting to happen, as we had already identified a number of bearish signals on the 1D and 1hr chart indicators.
For a brief moment though, the price action actually fell all the way down to the second highlighted support area below at $47.9 (orange circle). However, bulls were able to quickly spring back above the $48.70 mark.
This increased bearish momentum over the last few hours has pushed LTC into the oversold region across the 2hr MACD, Williams%R and the Stochastic RSI indicators. Combined with the strong secondary support region, this should provide bulls with an opportunity to recover into the falling wedge pattern in the short-term.
Looking at a number of indicators over 1hr candles, however, we can see that bears are still dominating Litecoin and will likely force LTC back onto the secondary support again soon.
-The CMF indicator line has plummeted straight down through the zero line as bearish selling pressure massively overpowers the bulls’ efforts.
-The RSI line is now well into the oversold region as buying momentum diminishes.
-The price action has passed bearishly through the lower Bollinger band, signaling an oversold moment and high bearish volatility.
If the pressure continues at this rate, however, we may see the price action break through this secondary support and find itself down on the next key level at $46.
Litecoin (LTC) Price Targets