LTCUSD has been trading inside a descending triangle and is currently testing support at 110. A break below this level could mark the start of a longer-term downtrend of the same height as the chart formation.

A bounce, on the other hand, could lead to another test of the triangle resistance around 150. The 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that a bounce is more likely to happen than a break at this point.

However, it’s also worth noting that the gap between the moving averages is narrowing to indicate a potential downward crossover that would draw more sellers in. The triangle spans 110 to 360, so the resulting breakdown could be huge.

Stochastic is indicating oversold conditions, though, which means that sellers are already tired. The oscillator has yet to pull up to indicate a return in buying pressure.

The US dollar has drawn plenty of support from various factors in recent weeks, including the Fed rate hike, expectations for more tightening moves, and easy geopolitical risks. This week, the NFP report is due and could further set the dollar in a particular direction.

Cryptocurrencies like LTCUSD, on the other hand, haven’t fared as well because of mostly negative reports leading up to the end of the previous quarter. This includes bans by social media platforms and a number of regulatory efforts that led investors to liquidate their holdings.

This means that litecoin could be starting this new month and quarter on the back foot, although some analysts say that cryptocurrencies are showing signs of bottoming out. It might take a significantly positive catalyst to allow these to pull up from their steep dive, though, and there appear to be none on the horizon just yet.

Tags: ,

Leave a Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.