Litecoin sentiment: the correction is not over yet
|- LTC/USD is sliding within a tight channel.
- The daily RSI signals that the correction is not finished.
LTC/USD is changing hands at $42.52, down over 1.5% since this time on Tuesday. The coin retraced from the recent high at $47.36 and has been trading in a range limited by $41.00-$45.00.
While the correction after a strong growth looks natural, the technical picture remains positive as long as the price stays above $40.00. This psychological level is protected by SMA50 (4-hour chart).
From the long-term point of view, the further upside may be limited by $46.70 (DAM200). Once it is cleared, the recent high of $47.36 and psychological $50.00 will come into focus.
On the downside, the critical support area is created by a confluence of DMA100 and DMA50 at $34.50-$34.00. A sustainable move lower will negate the recent upside leg and push the coin back into the bearish trend.
The Relative Strength Index on a daily chart has reversed from the overbought territory. It points to the South, which implies that the correction is not over yet.
LTC/USD, 1-day 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.