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Litecoin Price Analysis: Litecoin bulls in deep trouble after support at 50-day SMA turns to resistance

TL;DR Breakdown

  • Litecoin’s monthly high for June is $197
  • Volatility on the Litecoin market is low
  • The 50-day EMA is sloping downwards, which suggests aggressiveness from sellers.

Litecoin Price Analysis: General price movement 

Litecoin’s monthly high for June is $197. The current price indicates the coin has shed at least 18.82% since setting the high on June 3rd. Buyers are unable to consolidate enough volumes to beat two price hurdlers at $185 and $165. The coin has been stuck between $145 and $163 on the 2-day trading chart. $165 acts as a price hurdle and support at the same time. Litecoin broke below $165 on Monday’s 24-hour close, and for the better part of Tuesday and Wednesday, the coin has been hovering below this support level. The overview of Litecoin’s market is bearish. One reason being the coin is stuck around the bottom trendline drawn on the 52-week chart during December’s price low.

But compared to the broader market, Litecoin bulls are attempting to hold up and remain strong against the prevailing bearish momentum. All cryptocurrencies, including Bitcoin, have had a rough week. For example, the leading coin dropped to $31K. Some more coins, Ethereum, and competitors Cardano and Polkadot also corrected lower on yesterday’s chart.

The 50-day EMA is sloping downwards, which suggests aggressiveness from sellers. Bears on the 1-hour chart are still attempting to break below another support at $158. Consolidation to reverse the price weaknesses on the 24-hour chart depends on profit-booking early into the downtrend, which could rebound LTC back above $165. Another sign of weakness is the price still wavers near the lower edge of an expanding Bollinger band. The good news is it is pointing towards a breakout over the upper limit, but way too far -suggesting optimism from buyers to overcome the downtrend. 

Litecoin price movement in the past 24-hours: Negative Oscillations

The MACD lines are closing but still below 0 and at -1. Which supports a negative outlook for Litecoin’s market. Furthermore, the relative strength index has crossed to the oversold conditions and is oscillating around 52 – further supporting the bearish movement.  

Litecoin price has been trading within the same price range for some time, indicating low volatility. The chart alone suggests low volatility; especially the 24-hour chart seems more a line with moderately short candlesticks. This shows low amounts of corrections and little to no amounts of market activity. 

(Source: Tradeview)

LTC/USD 4-hour chart: Moving averages turn against buyers

The LTC/USD trading pair did dip to $152 on the 4-hour chart. A point of rebound from which the bulls were able to break above a double bottom pattern and build up support on the upper limits of the pattern at $156. While the present pattern appears like a tug fight between the bulls and bears, all indicators seem to favor the bears. The inability of the bulls to gather support from the broader market might result in a break out from the tug fight and a swing low to lower supports. In fact, there is a high likelihood of a falling wedge on the 4-hour chart. Hence anticipating drops in the next few hours of the daily trading chart. 

The 50 and 100-day SMAs, on the other hand, have turned against the buyers to form resistance. This has raised the bar for more buyer volumes needed to activate a bullish trendline. The only support the bulls can count on is $145. At the time of writing, the current support lies at $150, and the price is $158. 

Litecoin price analysis conclusion: Do not break-even

Some traders might be tempted to exit out of the positions given the current bloodbath facing the cryptocurrency market. However, the current bearish momentum is short-term, long-term fundamentals are in favor of the bulls. And given we do have a positive long-term outlook, it’s best that investors hold on to their positions instead of breaking even from their May dip buys. 

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