LTCUSD is heading south but could be due to find support at the middle of its range or at the bottom. Price is hovering around $250 at the moment and technical indicators are hinting at some downside.
The 100 SMA is above the longer-term 200 SMA for now, but a downward crossover appears to be brewing. If this materializes, LTCUSD could fall below its short-term consolidation and test support near $200.
Stochastic is also on the move down to suggest that selling pressure could kick in while RSI is on a slow climb and also appears to be turning lower. A return in bullish momentum, however, could still take LTCUSD to the top of the range at $300.
LTCUSD has been on weak footing ever since its founder liquidated his holdings citing conflict of interest. Still, this altcoin has been able to stay supported on dollar weakness and the dip in bitcoin interest.
Traders appear to be drawn to other digital assets these days as bitcoin has been unable to sustain its earlier rallies. After all, rival cryptocurrencies like litecoin are much cheaper to buy. Besides, news that China has closed down bitcoin mining operations in the country is also a risk for holding bitcoin.
Meanwhile, the dollar is facing a lot of upside barriers on doubts about the Fed’s pace of tightening. A number of policymakers have cautioned about weak inflation and the upcoming PPI release could provide more clues. Stronger than expected figures could lead to positive expectations for the CPI release on Friday, which might then buoy rate hike expectations for the year.
The tax reform approval has had a limited impact on the currency so far, and traders appear willing to wait and see how it actually impacts growth down the line.