Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Earlier this week, the MimbleWimble upgrade announced for Litecoin and the price had no bullish reaction to this news. This is actually a common feature of bearish markets, where fear moves the price and good news barely leaves a trace as it comes and goes. Litecoin’s bearish structure has been around for almost eight months now and the bottom may not be there yet.
LTC 1-Day Chart
The daily chart showed that Litecoin was in a downtrend on the higher time frames from mid-November. This is true for many altcoins on the market. In February and March, the $100 area was held as a support for LTC, but April’s selling pressure weakened bids in this area, and the price could turn lower in late April.
In the past two weeks, it has also crossed the $80 mark and retested as a resistance. Further south, the $52.5 and $40 levels are likely to act as support levels in the coming weeks.
The market structure is decidedly bearish on the higher time frames, and the levels to watch out for are $52 and $80 as support and resistance levels, respectively.
The RSI on the daily dropped to 23 to indicate extremely bearish momentum. A relief could show up in the coming days, but the trend should remain bearish overall. Not only has the price formed a series of lower highs and lower lows, but the momentum indicators also showed seller dominance.
The RSI has remained below the neutral 50 on the daily chart since early April and the Awesome Oscillator has also remained below the zero line. In addition, the OBV is steadily declining, a finding in line with the bearish trend.
Chaikin cash flow has fallen below -0.05 in recent days in response to intense selling pressure.
The indicators showed momentum was in the hands of the bears, and the market structure was also bearish. Even if Litecoin can climb past $80, the trend would still be in favor of the bears. The resistance is also further higher in the $100 area, and buying opportunities may not present themselves until these resistances are broken.
This post Litecoin [LTC] investors should watch these levels in the coming weeks
was published first on https://ambcrypto.com/litecoin-ltc-investors-could-watch-out-for-these-levels-in-weeks-ahead/