Litecoin Trades Below a Downside Resistance Line
JFD Team | May 19, 2022 07:39AM ET
LTC/USD traded lower yesterday after it hit resistance at 74.10, but the slide was stopped at 64.35. The crypto has been trading between those two barriers since May 13, and thus, we would consider the very short-term bias neutral.
However, zooming slightly out, we see that Litecoin remains well below the downside resistance line taken from the high of Mar. 30, and thus, we see more chances for traders to exit the latest range through its lower end.
Such a break could invite more bears into the game, who could dive towards the low of May 12, at 50.55. If they don’t stop there, then a break lower would confirm a forthcoming lower low on the daily chart and could extend the slide towards the 41.00 barrier, which acted as an important support zone between May and September 2020.
The RSI lies below its 50 line and points down, while the MACD runs below its zero and trigger lines. Both indicators detect downside speed and support the notion that this crypto will soon be breaking below the 64.35 support zone.
We will abandon the bearish case only if we see a clear break above the 97.80 barrier, which acted as a key support between Apr. 25 and May 3. Such a move will probably also confirm the break above the downside resistance line taken from the high of Mar. 30 and could initially target the peak of May 5, at around 106.75.
Another break, above 106.75, could extend the advance towards the high of Apr. 21, at 114.70, the break of which could carry more bullish implications, perhaps setting the stage for advances towards the high of Apr. 5, at around 127.15.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.