LTCUSD Price Technical Analysis – Breaking Lows!

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LTCUSD Price Key Highlights

  • Bearish momentum is back in play for LTCUSD price, as it found resistance at the 100 SMA dynamic inflection point and resumed its drop.
  • LTCUSD price broke below the previous lows on the 1-hour time frame and is going on to create new ones, possibly dipping to the next Fibonacci extension levels.

LTCUSD price has resumed its downtrend, setting its sights on an earlier area of interest near the 3.000 major psychological level. 

Indicators Hinting at More Losses

Technical indicators seem to support the idea of further declines for LTCUSD price, as stochastic is pointing south and reflecting the presence of selling pressure. Similarly, RSI is heading down but is already nearing the oversold region and might draw buyers back in the game.

Note that a bullish divergence appears to be forming for RSI, as the oscillators made lower lows while LTCUSD price drew higher lows. If a bounce takes place, LTCUSD could make another test of the dynamic resistance at the 100 SMA.

The 100 SMA is way below the 200 SMA, confirming that the path of least resistance is to the downside. The moving averages don’t appear ready to make any new crossovers anytime soon, as the short-term SMA is increasing its distance from the longer-term moving average.

LTCUSD price is finding support at the 50% Fibonacci extension level at the moment, although there could be enough bearish momentum to push it down to the next potential support at 3.100.

Intraday support level – 3.100

Intraday resistance level – 3.450

Technical Indicators Settings:

  • 100 SMA and 200 SMA
  • Stochastic (8, 3, 3)
  • RSI (14)

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com