ForexMinute.com — Over the last few days, Litecoin price is on a smooth downtrend thanks to a parallel price action in the Bitcoin market. It has now went inside a newer consolidation, situated right below the daily moving average curve. During this time, Litecoin has occasionally attempted to extend its bearish bias by crossing below the range support near 1.40. As we enter yet another European session, let’s see how the price action would be.
Litecoin 4H Chart May 7
As you can see the chart above, the Litecoin price is clearly trending inside an intermediate bearish bias, while its movements are notably sideways. It is further demonstrated by the price being below the 200-, 100-, and 50-H SMA. Also, the 4H RSI is near 40, further indicating price to be in a strong selling area. The MACD blue curve has also drifted inside the negative territory, establishing a clear bearish sentiment in the Litecoin market.
As price continues to stay downside, the pressure is clearly visible on the shaky range support 1.40, which has been broken once in last 24 hours, followed by a narrow upside correction. However, if price manages to break below 1.40, the downside risk will ultimately fall on 1.35 low from last week.
Conversely, if price manages to float above 1.40 for long, it would surely be attempting some near-term upside correction towards the 50-H SMA, 1.42. A break above this level would put pressure back on 1.50, last week’s higher high. However, price staying below 1.45 will continue to keep the bearish bias alive.