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Litecoin [LTC/USD] Technical Analysis: Support breaks prove to be final nail in the coffin as crypto winter continues

Akash Anand

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Litecoin [LTC/USD] Technical Analysis: Support breaks prove to be final nail in the coffin as crypto winter continues
Source: Unsplash

The bear has shown no remorse to the cryptocurrency market after a brutal week. The past couple of days has seen may cryptocurrencies like Bitcoin [BTC], Ethereum [ETH] and Litecoin [LTC] crumble under the bear’s pressure, leading to price support breaks and significant drops. Litecoin, which has been struggling for a couple of weeks, continued its pursuit to climb out of the bear’s trap.

1 hour:

The one-hour Litecoin charts show the price drop continuing with some sporadic sideways price movements. The cryptocurrency’s support has been holding at $31.27 while the immediate resistance has been maintained at $50.013. The downtrend has taken the price from $41.69 to $34.07.

The Bollinger bands have shown a change in the size of the Bollinger clouds, which is a sign of increased trend changes. Both the upper band and the lower band have been moving parallelly with a slight divergence, an indication of another small breakout.

The MACD indicator has tended towards the bullish side with the histogram showing all green. The MACD line and the signal line are both headed for a crossover with both the lines moving towards the bullish realm.

1 day:

The one-day chart shows a more consistent market with the presence of an uptrend in the midst of multiple downtrends. The first downtrend saw Litecoin drop from $89.5 to $51.07 while the following short uptrend lifted the price from $51.7 to $55.98. The current downtrend saw the price fall from $41.88 to $34.2.

The Chaikin Money Flow indicator shows the graph way below the axis, a sign of the bear’s hold on Litecoin. The current drop by the CMF indicates that the money flowing out of the market is more than the inflow.

The Relative Strength Index [RSI] shows the cryptocurrency falling below the oversold zone. This points to the selling pressure being more than the buying pressure.

Conclusion:

The current bear hold on the cryptocurrency market does not seem to have waned with a majority of the indicators leaning towards the bear’s reign. The Bollinger band, CMF, and the RSI all ring in the arrival of the crypto winter, which has coincided with Bitcoin’s drastic fall.

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