Technical Analysis – LTCUSD pauses decline in crucial territory
July 27, 2023 12:30 pm
LTCUSD (Litecoin) experienced a massive surge on June 30, gaining more than 28% in a single session before posting a fresh 15-month peak of 114.90 three days later. However, the digital coin has been in a downside correction since then, forming a structure of lower highs, which has paused for now around the converging 50- and 200-day simple moving averages (SMAs).
This latest pullback is also endorsed by the momentum indicators. Specifically, the stochastic oscillator dipped in the 20-overbought zone, while the RSI is hovering below its 50-neutral mark.
Should that recent weakness persist and the price fall beneath its SMAs, the recent support of 87.35 could act as the first line of defense. Slicing through that region, the price could descend towards 81.60 before the May low of 75.50 gets tested. Even lower, the June bottom of 71.00 may curb further retreats.
On the flipside, if the price posts a bullish cross above the triangle pattern, immediate resistance could be met at the 96.50 hurdle registered in June. Conquering this barricade, the bulls could attack the recent resistance area around 104.40, which also held strong in February and April. A violation of the latter could open the door for the 15-month peak of 114.90.
Overall, LTCUSD has been experiencing a strong pullback in the short term, which has temporarily paused around the 50- and 200-day SMAs. Moving forward, a break above or below the symmetrical triangle pattern could be followed by a significant move in the same direction.
LTCUSD (Litecoin) experienced a massive surge on June 30, gaining more than 28% in a single session before posting a fresh 15-month peak of 114.90 three days later. However, the digital coin has been in a downside correction since then, forming a structure of lower highs, which has paused for now around the converging 50- and 200-day simple moving averages (SMAs).
This latest pullback is also endorsed by the momentum indicators. Specifically, the stochastic oscillator dipped in the 20-overbought zone, while the RSI is hovering below its 50-neutral mark.
Should that recent weakness persist and the price fall beneath its SMAs, the recent support of 87.35 could act as the first line of defense. Slicing through that region, the price could descend towards 81.60 before the May low of 75.50 gets tested. Even lower, the June bottom of 71.00 may curb further retreats.
On the flipside, if the price posts a bullish cross above the triangle pattern, immediate resistance could be met at the 96.50 hurdle registered in June. Conquering this barricade, the bulls could attack the recent resistance area around 104.40, which also held strong in February and April. A violation of the latter could open the door for the 15-month peak of 114.90.
Overall, LTCUSD has been experiencing a strong pullback in the short term, which has temporarily paused around the 50- and 200-day SMAs. Moving forward, a break above or below the symmetrical triangle pattern could be followed by a significant move in the same direction.
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