- Litecoin suffered another rejection at $200, opening the door to the ongoing retreat.
- An ascending channel failed to make a breakout at the x-axis, allowing bears to increase their position.
- Support at the 200 SMA on the 4-hour chart could ignore the bearish narrative in favor of a recovery move.
Litecoin has made an appreciable move upward this week, adding to last week's recovery. However, the uptrend lost energy slightly above $200. LTC suffered another rejection at this level, pushing the price under $200. At the time of writing, Litecoin is exchanging hands at $195, and it has lost 2.5% of its value on the day.
Litecoin bulls fight to reclaim the uptrend
LTC is holding above the 200 Simple Moving Average (SMA) on the 4-hour chart. The most recent rejection sabotaged Litecoin's possible 24% upswing. Hence, holding above the moving average could bring that chance back.
However, other technical levels reinforce the bearish sentiment. For instance, the Moving Average Convergence Divergence has started cementing the sellers' increasing dominance. A stronger bearish grip will befall LTC if the MACD line (blue) crosses under the signal line. Note that slicing through the triangle's hypotenuse may result in a 24% downswing to $145.
LTC/USD 4-hour chart
The 12-hour chart brings to light a sell signal presented by the Sequential Indicator. The call to sell occurred in a green nine candlestick. The indicator shows that the bullish momentum is reaching an end, and a correction is likely. If validated, Litecoin could in one to four candles on the same 12-hour chart.
LTC/USD 12-hour chart
Looking at the other side of the fence
The IOMAP shows that Litecoin is sitting on top of immense support areas. This means that the downswing to $145 could be ignored in favor of either a gradual recovery or consolidation. The most robust support runs from $184 to $190. Here, roughly 116,000 had previously purchased about 2.8 million LTC.
Litecoin IOMAP model
On the upside, Litecoin has a relatively smooth path toward $220. However, the model brings our attention to the subtle seller congestion zone between $196 and $201. Here, nearly 89,000 addresses had previously bought 1.9 million LTC.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.