Assessing if Litecoin [LTC] is targeting $50 as its next stop

1 month ago 35
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Disclaimer: The findings of the pursuing investigation are the sole opinions of the writer and should not beryllium considered concern advice

A recent study highlighted that the regular transaction number connected the Litecoin web has been beauteous overmuch the aforesaid arsenic 3 months ago, lasting astatine conscionable implicit 100k. Similarly, the progressive code number has besides remained unchanged, hovering astir 300k, the aforesaid fig it was backmost successful February. This suggested a deficiency of maturation successful presumption of users and investors for Litecoin. Combined with the fearfulness successful the market, the beardown downtrend of Litecoin connected the charts was alternatively unsurprising.

LTC- 1 Day Chart

Litecoin continues to toil nether  bearish pressure, $50 next?

Source: LTC/USDT connected TradingView

On the regular chart, the terms has made a bid of little highs and little lows going arsenic acold backmost arsenic precocious November. In fact, since November, nary plaything precocious of the downtrend (lower highs) has been breached adjacent once, which suggested beardown bearish pressure.

The $105-$115 country has been important successful the past, for illustration successful July past year, erstwhile the terms retested this country and rallied astir arsenic precocious arsenic $300. In the past fewer months, nary important absorption was seen successful this country but successful January, erstwhile the terms bounced from $110 to $140 but was rapidly pushed lower.

In the past fewer weeks, the intelligence $100 level has been mislaid to the bears. On little timeframes, the $75 level had immoderate significance. Due to the improvement of a hidden bearish divergence (white) betwixt terms and momentum, the $75-$80 country tin beryllium utilized to participate abbreviated positions.

Rationale

Litecoin continues to toil nether  bearish pressure, $50 next?

Source: LTC/USDT connected TradingView

In the past 2 weeks, the RSI has registered a higher precocious (white) portion the terms made a little high. This hidden bearish divergence is simply a awesome of a continuation of the downtrend, and the $60-$66 country could beryllium retested erstwhile again and perchance broken. The RSI has besides been beneath the neutral 50 since April, to amusement an ongoing bearish trend.

The Awesome Oscillator was besides good beneath the zero enactment to amusement beardown downward momentum. The OBV slid little arsenic good and was beneath the enactment it established successful March. The Chaikin Money Flow climbed backmost supra the -0.05 mark, but could soon beryllium pushed lower.

Conclusion

The indicators showed beardown selling unit and accordant bearish momentum, portion the terms charts besides showed a bearish structure. The $75 country could beryllium utilized to participate abbreviated positions connected the coin.

Akashnath is simply a Chemical Engineering postgraduate profoundly fascinated by Technical Analysis and the crypto markets and enjoys studying terms movements and trying to find patterns.

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