Litecoin price analysis: LTC/USD tests the buyers’ appetite while the buildup of sellers continues
|- The path of least resistance for LTC/USD is to the upside.
- The price could make an inverse head-and-shoulders pattern that will open the door for reverse signals.
LTC/USD is getting ready for a comeback from the overdue selling pressure. The descending channel resistance has stood ground for more than two days with the buyers' efforts submerged in selling activities. The downside trend seems to have gained momentum and is pulling the bulls with it.
The 100 SMA has crossed the longer-term 200 SMA to indicate that the path of least resistance is to the upside. Similarly, it means that the downside momentum has a higher chance of reversing than continuing. Consequently, both the moving averages are representing dynamic inflection positions.
At the same time, the Stochastic trend indicator is going to the south; however, it is dipping towards the oversold region, which means that the bulls are ready for a comeback. On the other hand, the RSI is closing in towards the lower end, but it is closing in on the oversold regions to show that the buyers could enter at any point.
The drop could sustain until the $140 level near the mid-channel. However, the price could make an inverse head-and-shoulders pattern that will open the door for reverse signals.
In other news in the market, Binance has come out to refute claims that it conflicts with Japan’s regulator FSA. The CEO of Binance through Twitter said that the information circulating the internet is due to “irresponsible journalism.” The assurance from the CEO could calm the jitters in the market and hopefully, have a ripple effect on the prices in the market.
LTC/USD hourly 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.