Litecoin [LTC] Technical Analysis: Bears Retain the Upper Hand as Bulls Offer Weak Resistance
Litecoin [LTC] is one of the many cryptocurrencies that is facing a difficult period of late since the unexpected slump of January 10, 2019. It has struggled to get out of the bear’s grasp for a while now, which does perhaps raise concerns about the immediate future of LTC.
At the time of press, LTC was priced at $31.01, way below its value of $40.79 on 8 January. It has a market cap of $1.863 billion and a 24 hr trading volume of $554 million, with a majority of it ( $58.42 million or 9.96%) being contributed to by ZB.com, via the trading pair LTC/USDT. Finally, LTC’s value has fallen by a significant 6.45% over the last 24 hours.
The 1-hour chart demonstrated a significant downtrend that extended from $33.381 to $31.106 after a brief uptrend that extended from $33.307 to $33.697. The last point of resistance was at $33.723 while the support point at $30.744 was holding strong.
The Parabolic SAR has the markers above its candlesticks, an indication of a bearish market. However, considering it’s flattening, it would seem that the bulls are offering some resistance over the last hour.
The Chaikin Money Flow has the line creeping its way over zero, suggesting that money is slowly trickling back into the market on the back of the bulls.
The Relative Strength Index indicates that after a point when the market was oversold and was bearish, both the buying and selling pressures have evened out.
The 1-day chart exhibits a continuing downtrend extending from $40.155 to $32.863 while the last uptrend was witnessed over two weeks ago and ranged from $34.289 to $40.079. The support point is holding strong at $30.411 while the last point of resistance was at $40.131.
The Bollinger Bands are neither expanding nor contracting, which indicates that volatility in the market is holding steady.
The MACD shows that the signal line is way over the blue MACD line and thus, the projection is one of a bearish market in the immediate future.
The Klinger Oscillator has the reading line well below the signal line and therefore, suggests that the market has a bearish trend.
All the above indicators would suggest that the market is overwhelmingly bearish and shall remain so in the future. And although indicators such as the SAR, Chaikin and RSI suggest some form of bullish resistance, the near future of LTC, as suggested by other indicators, remains firmly in the bear’s realm.
Read the original analysis here.