HomeLitecoin NewsLTCUSD Technical Analysis for 06/18/2018 – Support Break and Retest

LTCUSD Technical Analysis for 06/18/2018 – Support Break and Retest

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LTCUSD recently fell through support at the $110 level and might be due for a retest of this area of interest. Applying the Fib tool on the latest swing high and low shows that the 50% to 61.8% levels line up with this broken support.

The 100 SMA is closer to the 38.2% Fibonacci retracement level, which might be enough to keep gains in check on a shallow correction. The 200 SMA dynamic inflection point coincides with the 61.8% Fib.

The 100 SMA is also below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse.

RSI appears to have some room to climb before hitting overbought levels, but the oscillator is starting to point down to hint at a return in selling pressure. Stochastic is also heading lower without reaching overbought territory to signal that selling pressure is picking up. In that case, a test of the swing low or a breakdown could be underway.

Litecoin appears unable to have taken advantage of the bounce in cryptocurrencies lately, although it did manage to stem some losses. However, bearish pressure is returning as the dollar is enjoying safe-haven flows again.

The return in risk aversion is being pinned on Trump’s latest tariffs threats as this weighed on investor sentiment in Wall Street. Traders are likely fleeing to safety in anticipation of more tensions between the US and China, which might then bring traders back to lower-yielding assets.

There’s not much in the way of litecoin catalysts as this particular digital asset just tends to trail its peers. So far, traders appear to be holding out for more positive updates that could sustain the bounce overall, and it didn’t help that Goldman Sachs CEO Blankfein said that bitcoin is not for him.

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