Litecoin price analysis: LTC/USD bulls in retreat, Evening Star bodes no good

  • Litecoin has been in retreat since it topped at $144.16.
  • LTC/USD is vulnerable to further short-term losses. 

LTC/USD is changing hands at $129.60, down 3.4% since this time on Thursday. The 5th largest asset with the current market capitalization of $8 billion has been sliding down since it hit a multi-month high at $144.16 on June 12. Since that time, the cryptocurrency has lost 10% of its value. However, Litecoin is still in a green zone on a weekly basis. The coin may have the fourth positive week in succession. 

Litecoin’s technical picture

On a daily chart, an Evening Star candlestick pattern may mean trouble for Litecoin bulls. The downside correction is likely to gain traction with the initial aim at $122.00 (SMA200 - Simple Moving Average - on 1-hour chart and SMA50 4-hour chart). This barrier is followed by $121.00 (the upper boundary of the previous consolidation channel) and the psychological $120.00. Once it is cleared, the downside momentum is likely to gain traction with the next focus on $110.00 handle (23.6% Fibo retracement for a significant downside move from December 2017 high).

On the upside, a recovery above $130.00 will allow for an extended bullish movement with the next aim at $131.16 (SMA50, 1-hour). The next upside target comes at $135.50. This barrier is created by SMA100 1-hour. A sustainable move above this handle will open up the way towards the next bullish goal at $140.00

LTC/USD, 1-hour 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.