HomeLitecoin NewsLTCUSD Technical Analysis for 07/16/2018 – Last Line of Defense?

LTCUSD Technical Analysis for 07/16/2018 – Last Line of Defense?


LTCUSD continues to hover around the rising channel support visible on the 4-hour time frame. A bounce could take it back to the top at $88 or at least halfway through until the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s a good chance for the recent selloff to continue, probably on a bounce of the nearest SMA.

Then again, it’s worth noting that the gap between the moving averages is narrowing to signal slowing bearish momentum. Once the crossover is completed, buyers could return and might even push price past the channel top.

However, RSI looks ready to turn lower even without reaching overbought levels. This signals that sellers are eager to return, possibly pushing LTCUSD below the channel bottom and spurring a steeper drop. Stochastic also looks ready to turn lower after briefly reaching overbought territory. A candle closing below $76 could be enough to confirm a bearish break.

Litecoin and its peers returned most of their gains from the other week as negative commentary and another hacking incident filled cryptocurrency headlines last week. Sentiment in the next few days, depending on industry updates, could determine whether or not LTCUSD could stay on track for a longer-term rebound or resume the previous slide.

Dollar demand also ticked higher in the past week due to easing trade tensions and strengthening Fed tightening expectations. Inflation reports came in mostly in line with expectations while a number of FOMC officials reiterated their support for more interest rate hikes until the end of the year.

US retail sales data is due today and another strong showing could mean more dollar gains, possibly for the rest of the week. However, a set of upbeat industry updates could still keep LTCUSD afloat.


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