Since breaking below the 6.66 support pivot, litecoin has opened up a bearish outlook in the medium-term towards 2.21. This week, it has fallen to 3.33 before finding support. Over the past 2 global sessions, litecoin has been sharply correcting last week’s decline. The 1H chart shows price pop up above the 200-, 100- and 50-hour SMAs, and the 1H RSI above 70. This shows the market has reversed a bearish trend, and established bullish momentum at least for the short-term.
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Note that price has also broken above the 5.00 handle, and is cracking last week’s consolidation high at 5.35. Litecoin looks poised to push toward the 6.00 handle, where price would be testing another resistance pivot from the 8/12 session, and the 100-period SMA in the 4H Chart. The 4H RSI has also broken above 60, which shows loss of bearish momentum.
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It should be noted that litecion’s current rally does have volume behind it, so there is a chance this can invalidate the medium-term bearish outlook toward the 2.21 low on the year. Above 6.00, the 6.66 broken support pivot could be tested as resistance. While the bearish outlook might not be valid anymore, a bullish outlook should still be limited, until price can break above 7.00.
Also, if the 4H RSI starts to hold above 40, and litecoin price starts to hold above 5.0, we can start litecoin is likely to be shifting back to a bullish outlook. If the bullish outlook is the case, there would be upside risk toward the 10.00-10.10, which is the high from June. A break above that can open up the bullish outlook even further.
Otherwise, the current medium-term mode for litecoin can be seen as shifting from bearish to a neutral one, with short-term bullish bias.
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