Litecoin market update: LTC/USD hints potential reversal
|- Litecoin is trading below a broken accelerated trendline; the major trendline will come in handy if losses continue.
- Potential for growth is immense but the bulls must brace themselves for a battle at $79-80 first resistance zone.
Litecoin price is trading between the simple moving average support and resistance. The visible shallow recovery from the losses posted in the last week of August fizzled out shy of the SMA 200 4-hours. An accelerated trendline (dotted) had been providing support, although increasing selling activity pushed Litecoin below it.
LTC/USD immediate downside is supported by the SMA 100 4-hours. Also offering support is the main trendline (black). Note that its significance may not be felt now but it will come in handy in the near future.
The Relative Strength Index (RSI) shows Litecoin is still pressed down by the existing selling pressure. While the RSI has managed to stay around the average (50), it is aiming downwards at the moment. On the other hand, Elliot Wave Oscillator has had a continuous bearish session likely to end in a bullish session. This could see LTC testing the first resistance at $79-80.
At this point, Litecoin will either trend upwards to the second resistance at $90 or plunge to retest the major support at $62. If $62 resistance is tested again, Litecoin could give in for a rally to the third resistance at $100-110.
LTC/USD 4-hour chart
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