Lorenzo Stroe
Independent Analyst
- LTC/USD has been trading sideways for the past week.
- The resistance level at $50 remains as the most critical level to beat.
- A clear break of $50 could take LTC up to $60.
Litecoin is having a hard time deciding which direction to take. The digital asset couldn’t break $48 on June 4 and was rejected on June 5 as well. More importantly, bulls need to climb above $50 convincingly.
LTC/USD trading volume has been declining over the past week indicating that a significant move is on the way. LTC has dipped below the 12-EMA and the 26-EMA on the daily chart but has never closed below any of them. This indicates that bulls have more strength than bears and are willing to buy the dips.
Let’s look at some of the most important levels to beat and defend for LTC traders.
In the short-term, bulls are facing a mighty resistance level at $47.46 where the SMA50 (15-minutes), Fibonacci 38.2% (Daily), SMA10 (1-hour), middle Bollinger Band (1-hour) and the Pivot Point R2 (Weekly) are all converging.
There is also some resistance at $47.70 where the Upper Bollinger Band (15-minutes) and the Fibonacci 23.6% (Daily) are standing.
For support, bulls can look for the $47, psychological support level where the Fibonacci 61.8% (Daily) and the Lower Bollinger Band (1-hour) are uniting.
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Learn more about Technical Confluence
LTC/USD technical levels
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