- Litecoin embarks on gains trimming exercise targeting $50 on the downside.
- All technical indicators point towards a potential breakdown in the coming sessions.
Litecoin has eventually broken below the support enjoyed at $60 for almost a week. The zone was very helpful keeping in mind that corrections towards $70 have become untenable. As discussed in earlier published price analysis, the Asian trading session was marked with consolidation within a narrow range between $60 and $62. However, as they say, it is always calm before the storm.
After breaking the trendline resistance, $58 support is the only barrier left preventing a potentially devastating drop below $50. Besides, the 50 SMA on the 4-hour chart has begun narrowing toward the 100 SMA to show that the bears are getting back in action.
From a technical point of view, Litecoin has commenced another downtrend phase. The RSI is heading toward the oversold. At same time, the MACD is back in the negative territory and features a bearish cross. Both the indicators signal a bearish grip that is getting tighter with every session.
LTC/USD 4-hour chart
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