Litecoin market update: LTC/USD defends $79.00 news support
|- Technical indicators suggest the end of the bullish momentum as reversal takes over.
- Litecoin must defend newly established $79.00 support to avoid trimming gains heading to $75.00.
Litecoin reacted to Bitcoin’s breakout on Friday extending the gains in an engulfing candlestick that spiked above $80.00. Prior to the ballistic rise, the price had been consolidating below $76.00 while the downside strongly protected above $72.00.
The gains on Friday hit highs around $81.30 before Litecoin retreated to the newly established support at $79. There has been a break below a short-term trendline that had formed in the wake of the formidable gains today. If the ongoing declines clear $79 support LTC/USD could breakdown towards the 50 SMA and the 100 SMA above $75.00.
Technical analysis shows that the bullish momentum has hit a deadened and a reversal is possible. The RSI has been rejected from the overbought while the MACD is heading south towards the negative zone. As mentioned defending $79.00 is key for the continuation of the bullish trend.
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.