Litecoin rebounds but stays below a downside resistance line
|LTC/USD entered a recovery mode on Tuesday, but today, it hit resistance at 112.30, staying below the downside resistance line drawn from the high of March 30th. As long as the crypto continues to print lower highs and lower lows below that line, we will continue aiming lower.
A clear and decisive dip below 105.70 could confirm the case for further declines and perhaps target the low of April 11th, at 101.35. If that zone doesn’t hold this time around, its break would confirm a forthcoming lower low and may pave the way towards the 95.95 territory, defined as a support by the lows of March 7th and 10th. If that territory is not able to halt the slide either, then we could see the bears pushing the action towards the 91.05 zone, marked by the low of February 24th.
Shifting attention to our short-term oscillators, we see that the RSI turned down and now looks ready to fall back below 50, while the MACD, although above its trigger line, shows signs of topping within its negative territory. Both indicators suggest that the crypto is likely to start gaining downside speed again, which supports the notion for another round of selling soon.
In order to abandon the bearish case, we would like to see a strong rebound back above 115.25, the high of April 8th. This will confirm, not only a forthcoming higher high on the 4-hour chart, but also the break above the downside line taken from the high of March 30th. The bulls could then get encouraged to climb towards the 120.95 barrier, marked by the low of April 4th, where another break may set the stage for extensions towards the high of April 5th.
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