Litecoin price update: LTC/USD digs deeper into the Bollinger Bands as volatility expands
|- Litecoin bulls managed to defend $54.00 support but the danger of sliding below $50 is still very apparent.
- The expanding volatility and the negative technical picture mean that bearish dominance will last longer.
Litecoin investors were caught up in a surprise flash drop further below $60 on Monday. The reality that Litecoin dropped as low as $21 last year is still very real in their minds. Fortunately, the declines made a stop at $54.
On the other hand, Litecoin bulls have no intention of staying in the sidelines. For this reason, LTC has been pulled above $55 and even recovered the position above the Bollinger Band 5-hour lower curve.
However, the volatility levels are still high and Litecoin’s risk of dropping below $50 is becoming plausible. The RSI is moving deeper in the oversold. I expect that in the near-term a reversal on the account of LTC being oversold will come into play.
The Moving Average Convergence Divergence (MACD) is also locked within the negative territory. A bearish divergence suggests that bearish dominance will continue in the coming sessions. The only way to avert the risks of more declines is to pull LTC above $60 as soon as possible.
LTC/USD 4-hour chart
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