Litecoin is consolidating roughly between 1.78 and 1.88 as we can see in the 1H chart below.
In the 1H chart, the 200-, 100-, and 50-hour SMAs are clustered together and moving sideways, which reflect the low-volatility and sideways price action. However, we do see a slight bearish bias this week as price has held below the cluster of SMAs. Also, the 1H RSI has held below 60 for the most part and has been able to tag 30, which reflects development of bearish momentum.
If price pops up above 1.82-1.83, we would lose this bearish bias, and pressure would be on the 1.88-1.90 resistance area. what happens if price breaks above 1.90?
We can see that the range seen in the 1H chart is actually a range within a range, within another price range. Starting with a break above 1.90, if price can respect the smaller range as support, then there is upside to the medium range resistance around 2.05. If price shows support above 1.90 and breaks above 2.05, there is upside risk towards the 2.40-45 area.
Now, if price falls below 1.80 and then respects the broken range as resistance, there will be downside risk to the medium range support around 1.78. A break below wthat exposes the 1.24 low on the year.
We should remember that the prevailing trend since 2014 has been bearish. Thus the downside breakout is favored. Also, if price does reach the 1.24 low, there would be risk of continuing the prevailing downtrend, but the downside risk should be limited to 1.00 because this is where price was at the inception of litecoin, so we should anticipate possible support around the parity level.
Previous Post by Author: Bitcoin Continues to Coil