LTCUSD broke out of its descending channel pattern, indicating that a reversal is due. Price is completing its pullback to the broken channel support before resuming its climb.
The Fibonacci extension levels indicate the next upside targets, with the longer-term 200 SMA lining up with the 61.8% mark around $180. Stronger bullish momentum could take it to the full extension at $202.849.
However, the 100 SMA appears to be holding as dynamic resistance at the moment and is below the 200 SMA to signal that the path of least resistance is to the downside. This suggests that the selloff is more likely to continue than to reverse.
Stochastic is pulling up from oversold levels to indicate a pickup in bullish momentum, but RSI looks ready for another move lower to signal that price could fall back inside the channel.
Risk appetite appears to have returned to the financial markets on Friday as the US government ended a brief shutdown. This could be positive for higher-yielding assets like stocks and cryptocurrencies in the coming days, although it is still worth noting that these are highly-sensitive to investor sentiment.
There are no major reports due from the US economy today and the light market trading on a Japanese market holiday could pave the way for more volatility. However, sentiment appears to be turning in favor of LTCUSD and its peers recently after the Senate hearing emphasized the need for regulation to still be open to development.
Higher-yielders have gapped up slightly higher over the weekend to signal that a continuation of the longer-term climb is due. Either that or a correction from the earlier week’s selloff could be underway. There appear to be no major reports lined up from other major economies so headlines could be a major mover.