- This week’s trading has seen LTC/USD cancel the gains and sliding into a resistance range.
- Litecoin value could increase significantly as the buyers are encouraged to increase their activity.
The weekly timeframe chart shows how Litecoin has been correcting lower since the bull rally at the end of last year. Litecoin recorded all-time highs above $300. However, the downtrend in 2018 has seen Litecoin explore and refresh new lows to the extent it formed a support close to $21.9.
The Declines this December marked the beginning of a reversal that could also be mistaken for a new year rally. The reversal pushed Litecoin price above $36.00 before the bullish momentum came to halt short of $37.00. This week’s trading has seen LTC/USD cancel the gains and sliding into a resistance range. A support has been formed slightly above $29.00 while the range limit stands at $32.26 (coincides with the 100 SMA in the hourly range).
The above mentioned support has paved the way for an ongoing reversal above $30.00. The bulls must however pull the price above the 50 Simple Moving Average which likely to market the beginning of the new year rally. Further correction from the bear range will see growth which will battle the medium-term resistance zone at $37.00.
Another look at the chart, we see the MACD signal stuck slightly below the mean level. If the signal line can cross into the positive region, then we will be able to see Litecoin value increase significantly as the buyers are encouraged to increase their activity. In addition to that, the RSI on the hourly chart is has not sunk into the oversold despite the recent downward correction. In fact, it is in a slightly upward slant. This shows that the buyers have the influence at the moment and the situation is likely to continued towards the end of the year.
LTC/USD 1-hour chart