By Franklin Smith
The latest market growth rekindles buyer hopes in Litecoin within the previous month. Nevertheless, $62 – $64 has shunned upside efforts, preventing a sharp buying rally. Consequently, the alternative token swiftly plunged beneath the Exponential Moving Average ribbons, projecting a massive selling strength.
Moreover, the latest bearish engulfing candle highlighted a massive selling pressure surge. Sustained higher price rejection around the 20 Exponential Moving Average might catalyze a short-term decline before potential reversal chances. While publishing this post, Litecoin changed hands at $54.75.
Litecoin Daily Timeframe
The token’s buying revival saw LTC testing higher peaks within the last month. Litecoin witnessed an ascending channel action on the daily chart as bears kept the ceiling at $64.
The token eventually noted a bearish break beneath the ribbons, following a slight compression period around the EMA ribbons’ boundaries. Litecoin has secured immediate support at $53.7.
Bears wanted to dominate the short-term trends as the Exponential Moving Average ribbons remained southbound. A decisive bearish overturn on the EMAs would reinforce the selling momentum. An immediate bounce back from $53 can bolster buyers to prompt a slow-action period around the EMAS.
A closing beneath this foothold might expose Litecoin to extended pullbacks. Such developments would see LTC heading toward $50 before bulls join to enhance the buying strength.
Reasoning
The southbound RSI (Relative Strength index) presented a massive selling superiority. Sustained declines would favor selling activities in the coming days. Nonetheless, the on-balance volume’s higher troughs confirmed a minor bullish divergence.
An ultimate increase in its support floor might bolster buyers to halt short-term bleeding. Nevertheless, LTC’s ADX (directional trend) still battled to improve its feeble stance.
Final Thought
Considering the bearish break beneath the southbound Exponential Moving Average ribbons, sellers would target an extended selling spree. Buyers should join and safeguard the support at $53 to avoid fallouts, as the overall market sentiment remained unconducive for buyers. Targets would stay as discussed.
Lastly, Litecoin boasts a 96% correlation with Bitcoin. Thus, LTC enthusiasts should watch Bitcoin’s price action for lucrative moves in the marketplace.
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