Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Litecoin (LTC)’s previous rally saw decent gains stopping near the $114 mark. This level corresponded to the trendline resistance (white). Since then, LTC has dived below its Point of Control (POC, red). At the time of going to press, it tried to challenge its resistance.
A convincing close above the USD 106 zone would give LTC bulls enough momentum to challenge the USD 109-$111 resistance. While the 20 EMA (red) provided immediate support, the $105 horizontal support coincided with the trendline support (white, dashed).
At the time of going to press, LTC was trading at $106.1.
Litecoin 4 Hour Chart
The buyers entered the 15-month support near $90. The altcoin registered an ROI of over 28.7% from its 64-week low on Feb. 24. Despite these gains, LTC bulls struggled to topple the trendline resistance and continued to mark lower highs.
While trying to make up for its previous selling loss, it found a close above its 20 SMA (red) and 50 SMA (cyan). Also, the 20 SMA undertook a bullish crossover with its 50 SMA. This indicated an increasing buying influence.
From here on, the $105 zone could continue to provide strong support to buyers as they try to break above the POC. Breaking the trendline resistance and POC would be critical to halt the heightened sell-off seen in recent weeks. On the other hand, if the bulls decline, a close below the EMAs near a launch should not surprise investors/traders.
The RSI has been doing well since it picked itself up from oversold territory. It found a strong seal above the centerline and watched a retest of its ceiling at the 57 mark. While forecasting a bullish bias, the 54-point figure provided strong support.
The MACD histogram entered a tight phase, but the lines were above the midline, reaffirming the bullish strength. Meanwhile, the Supertrend remained in the green zone.
As the 20 SMA jumped northwards above the 50 EMA, the likelihood of short-term bullish moves was high. But the buyers need enough thrust to still find a durable lock above the POC.
Litecoin shares a 74% 30-day correlation with the king coin. It is necessary to keep a close eye on Bitcoin’s movement not to make calls based solely on the alt’s stand-alone technique.
This post Litecoin’s Leaves Its Trend In The Short Term, But Only After…
was published first on https://ambcrypto.com/litecoins-will-leave-its-near-term-trend-behind-but-only-after/