LTCUSD still seems to be under a lot of bearish pressure as it attempts to close below the bottom of its symmetrical triangle on the 4-hour time frame. However, technical indicators still suggest that bulls could have a fighting chance.
For one, the 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This means that support is more likely to hold than to break. The 200 SMA also lines up with the triangle bottom to add to its strength as support.
RSI is on the move down to signal that sellers have the upper hand and could take LTCUSD much lower from here. The chart pattern spans 72.00 to 100.00 so the resulting selloff could be of the same height. However, RSI is already nearing oversold levels to signal exhaustion among bears, so profit-taking could ensue and allow buyers to take over.
Stochastic is already starting to move up so LTCUSD might follow suit if buying momentum does pick up. This could take price back up to the triangle top around 88.00 and a break higher could be followed by a rally that’s the same size as the triangle.
There haven’t been much developments in the cryptocurrency space so far this week, which explains the consolidation and slight weakness among altcoins. While bitcoin has managed to hold on to most of its earlier wins, its rival digital assets aren’t faring as well.
Besides, the dollar has regained a lot of ground in anticipation for the US GDP release last week and this week’s FOMC decision and NFP report. Another set of hawkish remarks and tightening hints are expected, likely propping the US currency higher against litecoin and other altcoins later in the week.
Strong NFP data due on Friday could also prop the dollar higher across the board as this would support upbeat growth forecasts.