Litecoin has maintained inside a parallel channel at a time the place the broader market lacked clear course. Nevertheless, one other assault on the decrease trendline uncovered LTC to a minor sell-off. This was backed by the Superior Oscillator and MACD which instantly performed in favor of the bears.
However, bulls might look to reply on the 200-SMA (inexperienced) to forestall sellers from taking up. On the time of writing, LTC traded at $170.8, down by a marginal 0.4% during the last 24 hours.
Litecoin 4-hour Chart
The final week has seen LTC oscillate inside a parallel channel of $186-$174. With the candles under their 20-SMA and 50-SMA, one other assault on backside trendline was growing out there.
If bears do penetrate this protection, a stronger demand zone of $163-$166 might enable patrons to mount a comeback. Close to-term help stage of $155 might additionally set off a bullish counter response if wanted.
In the meantime, bulls could be aiming for an early cut-off on the confluence of the 4-hour 200-SMA (inexperienced) and $170 worth mark. From there, a rebound above the 20-SMA and mid-line of the sample would set a 3rd high on the higher trendline.
Probabilities of a parallel channel breakdown stemmed from weak readings on LTC’s Superior Oscillator and MACD. The AO, which is a gauge of market momentum, supplied promote alerts after shifting under its half-line put up a bearish twin peak setup. Decrease highs have been noticed alongside the MACD which threatened to ask extra promoting stress.
Lastly, the RSI was unable to maintain help across the mid-line as a result of downwards stress out there. Primarily based on its present studying of 42, some extra losses have been anticipated earlier than a reversal from oversold ranges.
LTC was on the danger of breaking south from its parallel channel- a growth which might transpire into one other 10% sell-off. The indications backed an unfavorable situation and short-sellers have been anticipated to behave on these bearish alerts.
Nevertheless, the 4-hour 200-SMA could possibly be the reply to many market uncertainties. A direct rebound would enable LTC to shift again throughout the confines of a parallel channel.