LTCUSD Price Key Highlights
- LTCUSD price has sold off sharply recently, following the formation and breakdown from a double top pattern.
- Price pulled back close to the broken neckline support then resumed its selloff, indicating that bearish pressure is in play.
Looking at the longer-term time frame, however, shows that LTCUSD price is still in an uptrend, but is already testing the line in the sand for this rally.
Bulls to Return?
The rising trend line connecting the lows of LTCUSD price action since mid-November still seems to be holding as support. This coincides with the 61.8% Fibonacci retracement level on the latest swing high and low.
In addition, the 100 SMA appears to be holding as a dynamic support area. However, this short-term SMA is below the longer-term 200 SMA so the path of least resistance is to the downside.
Meanwhile, stochastic is slowly making its way up, suggesting a gradual return in bullish momentum. RSI is also starting to tread higher, confirming that a bounce is possible. Depending on how strong buyers are, LTCUSD price might be able to move up to the previous highs near 3.800.
If sellers remain in control, a breakdown of the trend line support could be seen, followed by a continuation of the recent selloff. The average directional index (ADX) is still moving around the 50.0 level so trending market conditions are present but may be starting to fade.
A break below the support area could take LTCUSD price down to the next floor around 3.200 then at 3.000. Better wait for a long red candle to close below the current consolidation around 3.250 to signal that bears are gaining traction.
Intraday support level – 3.300
Intraday resistance level – 3.500
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