After a decent run, Litecoin looks like it might be trying to break lower
LTC/USD rallied all the way from 22.37 to 147.27 between December 2018 to June 2019. Now it seems that prices are breaking lower towards the support level at 76.46. The price action has been looking pretty bearish since the upside rejection of 106.86 six sessions ago. At that point, the price started to create a rising wedge formation which has since broken to the downside. The medium-term trend made a few lower high and lower low waves but at the point of retracement, there have been a couple of higher highs and higher lows since. Now 83.32 needs to be broken to continue that theme and break back to make the next wave low.
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The MACD indicator has now produced a bearish signal with the histogram also nearly at the mid-line point. This will be confirmed if the histogram breaks lower and turns red and the two moving averages crosses.
The RSI indicator has also broken a trendline and is now back below the 50 point level. There is a long way until it hits the oversold area and if the 76.46 level is tested it may just make it there. Ahead of the aforementioned support, there is the psychological support at 80.00 and there may be some orders lying there to be aware of.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
