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Litecoin [LTC] Technical Analysis: Bears retain long-term control of the LTC market

Jibin M George

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Litecoin [LTC] Technical Analysis: Bears retain long-term control of the LTC market
Source: Pixabay

Cryptocurrencies around the world have taken a tumble of late, especially since January 10, and the case of Litecoin [LTC] is no different. LTC has been going through a regular downslide since the heights of the previous year and despite some bullish resistance, is struggling to improve on its value against the US dollar which stands at $31.83 presently.

At the time of press, LTC retained its eighth-position in the list of world’s largest cryptocurrencies with a market capitalization of $1.914 billion. It also has a 24-hour trading volume of $602.28 million with ZB.com, contributing a significant 7.98% via the trading pair LTC/USDT.

1-hour

Source: TradingView

Source: TradingView

The uptrend for LTC in the one-hour time frame is struggling to hold and extends from $31.071 to $32.049. However, there is still some way to go before LTC overhauls the downtrend that extended from $33.375 to $31.179. Both the resistance and support points are holding steady at $32.479 and $30.897 respectively.

The Bollinger Bands are holding steady after it seemed that they were contracting. This suggests that volatility is holding steady for the time being.

The Aroon indicator has the Aroon up line cross and go over the Aroon down line and is thus, closer to 100, indicating that some bullish resistance has overpowered the predominant bearish trend of the market for the time being.

The Relative Strength Index indicator has the trading market neither being oversold or overbought, suggesting that both the buying and selling pressures have evened themselves out.

1-day

Source: TradingView

Source: TradingView

The long-term chart for LTC gives a more bleak reflection of the fortunes of LTC. The bearish market dominates trends as the coin is yet to reverse the huge downtrend that extended from $89.180 in mid-July last year to $40.155 last week. The uptrend extended from $29.304 to $40.079, but it was brief and has since dissipated.

Both the resistance and support points at $40.203 and $23.422 respectively, have also held firm against bullish and bearish market pressures.

The Parabolic SAR has all the markers above the candlesticks, indicating that the brief bullish resistance has been snuffed out and that the bears have retained overwhelming long-term control of the market.

The MACD line has the signal line hovering under the MACD line, indicating a bearish market. However, the histogram would suggest otherwise which means that gradually, the bearish trend is flattening thanks to bullish influence.

The Chaikin Money Flow indicates that the market is trending below the point of zero, suggesting that money is still trickling out of the market and that it remains a bearish market despite bullish efforts to the contrary.

Conclusion

The one-hour chart suggests a minor bullish trend to LTC’s prices, as is suggested by indicators such as Bollinger Bands, Aroon and RSI. On the other hand, the long-term, one-day chart suggests a bleaker market with the bears still retaining control over much of the Litecoin [LTC] market.

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