Litecoin market overview: LTC/USD oversold and ready to bounce


  • The immediate upside is limited by a confluence formed by the converging EMA100 and SMA100.
  • Litecoin is still oversold despite the recovery from this week’s lows.
  • Technicals show the end of the bear momentum and the beginning bullish traction.

Litecoin is showing signs of exhaustion from the downtrend experienced from the beginning of July. Recovery to June highs around $146 has been impossible with the path of least resistance having an affinity to the south.

There has been an attempt for recovery from the lows posted at $77.63, however, the buyers have not been able to sustain gains above $100. Besides, the daily chart shows LTC/USD having corrected to the current market value of $97.76. The immediate upside is limited by a confluence formed by the converging 100 Exponential Moving Average (EMA) and the 100 Simple Moving Average (SMA) daily.

Also Read: Rep. David Schweikert: Lose the "disdain for Facebook" and see Libra as an opportunity

In a technical perspective, Litecoin is still oversold despite the recovery from this week’s lows. The slow stochastic oscillator had dived to 6.81 and is now pointing upwards at 40. A correction above the average (50) will further increase the buyers’ confidence in the recovery. The signal from the 12-Day Moving Average Convergence Divergence (MACD) shows the end of the bear momentum and the beginning bullish traction. The reducing negative divergence is a key indicator for a bounce.

In terms of support, $90.00 will try to cushion the fall in the event of a reversal. The next support at $80.00 is very key while the recent low at $77.63 is a major support. On the upside, correction above $100,000 and the EMA100 and SMA 100 will open the door to gains heading towards $120 hurdle.

LTC/USD daily 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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Sellers come in ahead of 10,500

BTC/USD sells of late in the session as we draw to a close on an eventful day in the financial markets. We were expecting Fed Chair Jerome Powell to be the main event of the session but China announced plans to add tariffs to US imports. Then Powell once again stood firm against Trumps pressure to loosen monetary policy and the US President lost it on twitter. 

More Bitcoin News

XRP pushes to session highs but a key level is in sight

XRP/USD pushes to session highs. Key resistance level is in sight. 0.300 still seems the like the long term target for bulls.

More Ripple News

BCH/USD: 300 is well supported once again

Bitcoin Cash has rejected downside moves yet again. Key trendline apex needs testing soon. 360 is still the level to breach for upside momentum.

More Bitcoin Cash News

NEO announces new partnership with gumi Cryptos bringing blockchain to Japan

NEO Foundation has announced a new partnership with gum Cryptos. The two organisations will be working on bringing blockchain technology to Japan. 

More Neo News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Safe-haven or a high-yield asset? Bitcoin qualifies for both

The cryptocurrency market has been a mixed picture this week. Bitcoin attempted to settle above $12,000 practically every single day of the week...

Read the weekly forecast

BTC

ETH

XRP