Technical Analysis – LTCUSD still in a bearish hangover; crosses under 200-day SMA


Christina Parthenidou, XM Investment Research Desk

LTCUSD (Litecoin), the fifth largest cryptocurrency by market cap, turned on a slippery road after hitting a one-year high of 143.61 in June, with the price crossing below the Ichimoku cloud, and recently under the 200-day simple moving average (SMA). The bearish cross of the 20- and the 50-day SMAs is more evidence that the downward pattern may stay in place for longer.

Although the RSI is located in the oversold territory, the indicator has yet to show any sign of recovery, while the MACD has resumed negative momentum this week – both pointing to another negative short-term session.

Immediate support to additional downside corrections could be found within the 58.00-50.00 area, where the price consolidated several times last year and in March. Moving lower, the price could next stall somewhere between 42.00 and 39.50.

Alternatively, the price could bounce up to retest the descending trend-line drawn from the June peaks. If the bulls manage to surpass that border and close above the 20-day SMA, the rally could get more legs to challenge the 50-day SMA and more importantly the 97.00 resistance. A decisive break above the Ichimoku cloud could return buying interest to the market.

In the medium-term, Litecoin is ready to adopt a bearish profile as the market is slightly below the lower boundary of the 143.61-64.56 range. The softness in the 50-day SMA that heads towards the 200-day SMA is also a discouraging sign.

In brief, LTCUSD is expected to keep the bearish mood in the short-term, while in the medium-term, technical signals are not encouraging either.