LTCUSD Price Key Highlights
- LTCUSD price is currently trending lower, moving below a descending trend line connecting the latest highs of price action on the 1-hour time frame.
- Price is currently testing the falling resistance area, which lines up with a former near-term support, and might be ready to head back down again.
LTCUSD price failed to sustain its previous rally, creating a reversal pattern and confirming the selloff.
Bears in Control?
Technical indicators on the 1-hour chart of LTCUSD price are supporting the ongoing downtrend, with the 100 SMA just crossing below the longer-term 200 SMA earlier in the week. This signals that bears are on top of their game and are gearing up for more declines.
Stochastic is heading up but is closing in on the overbought zone, which means that the current rally might lose momentum and reverse soon. RSI is in the same position, signaling a likely return in bearish pressure.
LTCUSD price is currently testing the bottom part of the previous tight consolidation, although a higher pullback to the top of the range around 3.60 and the 100 SMA might still be possible. Any moves past this point could indicate that the quick downtrend is already over.
If the resistance area at 3.40-3.60 is able to keep gains in check, LTCUSD price could resume its drop to the previous lows at 3.20 or much lower until 3.00. USD strength is currently in play, as the latest jobs data confirmed that the Fed is on track to hike interest rates before the end of the year.
Intraday support level – 3.20
Intraday resistance level – 3.40
Technical indicators settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from BitFinex, courtesy of TradingView