LTCUSD has been trending lower on both its short-term and long-term time frames. A downtrend channel can be seen on its 1-hour chart and it looks like price is ready to test the support.
LTCUSD just bounced off the top of the range at the 100 SMA dynamic resistance and has its sights set on the support at 2.960. A bounce off the range support could lead to another rally up to the top of the channel around 3.040.
Stochastic is on the move up though, indicating that buyers are still in control. If so, an upside breakout from the 3.040 level might take place and spur a short-term uptrend. Price has yet to break past the 200 SMA to confirm a longer-term reversal.
On the other hand, RSI is on middle ground but is on the move down. This suggests that sellers are also putting up a fight, possibly taking LTCUSD all the way down to the channel support.
Dollar weakness has been in play lately, after a few Fed officials have downplayed the odds of an interest rate hike in March. In addition, data from the US economy are hinting at downbeat NFP data, although FOMC members have been focusing more on inflation these days.
Fed official Dudley has pointed out that more dollar gains could be harmful for the economy, convincing some traders to lighten up on their dollar longs. This has led to a bounce for both bitcoin and litecoin, as these cryptocurrencies tend to advance on risk-on days.
Another factor that comes into play is the OPEC meeting, as more member nations are calling for production cuts and appear to have succeeded in setting a special gathering for this month. If this leads to measures that could curb supply, oil price gains could keep risk appetite in play and support LTCUSD.