LTC/USD bulls in retreat, Evening Star bodes no good

  • Litecoin has been in retreat since it topped at $144.16.
  • LTC/USD is vulnerable to further short-term losses. 

LTC/USD is changing hands at $129.60, down 3.4% since this time on Thursday. The 5th largest asset with the current market capitalization of $8 billion has been sliding down since it hit a multi-month high at $144.16 on June 12. Since that time, the cryptocurrency has lost 10% of its value. However, Litecoin is still in a green zone on a weekly basis. The coin may have the fourth positive week in succession. 

Litecoin’s technical picture

On a daily chart, an Evening Star candlestick pattern may mean trouble for Litecoin bulls. The downside correction is likely to gain traction with the initial aim at $122.00 (SMA200 – Simple Moving Average – on 1-hour chart and SMA50 4-hour chart). This barrier is followed by $121.00 (the upper boundary of the previous consolidation channel) and the psychological $120.00. Once it is cleared, the downside momentum is likely to gain traction with the next focus on $110.00 handle (23.6% Fibo retracement for a significant downside move from December 2017 high).

On the upside, a recovery above $130.00 will allow for an extended bullish movement with the next aim at $131.16 (SMA50, 1-hour). The next upside target comes at $135.50. This barrier is created by SMA100 1-hour. A sustainable move above this handle will open up the way towards the next bullish goal at $140.00

LTC/USD, 1-hour chart

Crypto Destroyer

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