- Litecoin is battling to find balance at the BB 4-hour middle after retreating from $140 resistance congestion zone.
- Litecoin has a bearish bias in the short-term while bears continue to gain traction – technical picture.
Litecoin has been caught in the market’s broad-based indecision and directionless motion. The trading activity across the board has decreased considerably. The 4-hour chart for LTC/USD trading pair Bollinger Band levels suggests the beginning of a consolidation phase following the rejection from $145 highs.
While exchanging hands at $135, Litecoin is battling to find balance at the BB 4-hour middle. Attempts to correct towards $140 yesterday flopped short of the level leading to the ongoing correction. The 50 Simple Moving Average (SMA) is also offering immediate support but if LTC/USD breaches this confluence, the next stop is at $130 (BB 4-hour lower). The 100 SMA 4-hour will try to offer support at $124 while the key support lies at $120. Further correction south could test $110; $100 is the primary support but an overstretch for Litecoin according to the current technical picture.
Technically, Litecoin has a bearish bias in the short-term. The applied technical indicators are sending negative signals starting with the 14-day Relative Strength Index (RSI) currently heading south after failing to breach the overbought. While the Moving Average Convergence Divergence (MACD) has managed to stay in the positive zone, its downward slopping trend shows how the bears continue to gain traction.
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