Litecoin (LTCUSD) 1H Chart 3/9 (click to enlarge)
Litecoin was bullish to start the week, but stalled after it tagged the 2.00 handle. The 1H chart shows that it has since started to consolidate in a choppy manner. Overall, one can say that a falling wedge is forming. That is looking at the chart with a bullish bias, and it is reasonable with the trend being bullish in the previous couple of weeks.
On the other hand, we can also say that LTCUSD appears to be rounding out a price top. Note that price has broken below the 200-, 100-, and 50-hour SMAs, which shows initial bearish bias. These moving averages clustering together also shows a loss direction. Furthermore, the 1H RSI dipped below 30, which showed initiation of bearish bias in the near-term.
Price appears to be pulling back up to start the week. It is now testing the cluster of SMAs. If price respects these moving averages as resistance, we would have an additional bearish slingshot signal.
Litecoin (LTCUSD) 4H Chart 3/9
(click to enlarge)
In the bearish scenario (where price holds below 1.90 for the most part, there would be downside risk first back to a common support in the 1.75-1.80 area. Below that, there is another support at the 1.65-1.70 area. Below that, price will have the low on the year at 1.10 in sight.
Now, if price pushes above 1.91, and starts to stay above 1.90, there would be upside risk back to the 2.03 handle. Above that, the 2.43 resistance, and the 2.73 high on the year would be in sight.
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