Litecoin price analysis: LTC/USD dives below $60 for the first time in 5 days
|- Litecoin embarks on gains trimming exercise targeting $50 on the downside.
- All technical indicators point towards a potential breakdown in the coming sessions.
Litecoin has eventually broken below the support enjoyed at $60 for almost a week. The zone was very helpful keeping in mind that corrections towards $70 have become untenable. As discussed in earlier published price analysis, the Asian trading session was marked with consolidation within a narrow range between $60 and $62. However, as they say, it is always calm before the storm.
After breaking the trendline resistance, $58 support is the only barrier left preventing a potentially devastating drop below $50. Besides, the 50 SMA on the 4-hour chart has begun narrowing toward the 100 SMA to show that the bears are getting back in action.
From a technical point of view, Litecoin has commenced another downtrend phase. The RSI is heading toward the oversold. At same time, the MACD is back in the negative territory and features a bearish cross. Both the indicators signal a bearish grip that is getting tighter with every session.
LTC/USD 4-hour chart
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.