LTCUSD appears to be hitting a roadblock on its move north as price is testing the resistance of a long-term channel. A small double top formation can be seen with price testing the neckline at the $100 level.
A break below this level could send LTCUSD down by at least $5 or all the way to the channel support closer to $80. The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance is to the upside. However, the gap is also narrowing to signal weakening bullish momentum.
If a downward crossover materializes, sellers could hop in and allow for a steeper drop. However, stochastic is treading sideways to signal further consolidation while RSI is pausing from its drop as well.
The US dollar has been on weaker footing after the latest set of updates on the ongoing investigation into Trump’s dealings with Russia. Still, optimism remains high for tax reform progress this week and a step in the right direction could continue to prop up the currency.
Also due later this week is the NFP report that could return the focus on December hike expectations. As for cryptocurrencies, the increased investor interest in bitcoin has carried over to other digital assets but to a lesser extent.
In particular, traders are keeping tabs on the release of three derivative products that could allow traders to short bitcoin. The CME bitcoin futures launch is also on their radar and more progress could yield gains for the industry in general.
In any case, geopolitical risk could also prove to be positive for LTCUSD and other digital assets as more provocation from North Korea could draw traders away from stocks and commodities to pursue higher returns on bitcoin and litecoin. Increased activity and higher volumes could prop price up as well.