Litecoin Drops Below Key Support Level - An Update
Litecoin Drops Below Support
I posted yesterday about Litecoin trading in a narrow range between two support/resistance levels.
But today the tables have turned and the lower support level has been clearly breached today:
1 Hour Coinbase Chart
As you can also see, we are currently hovering around the .618 Fibonacci retracement level.
If that level is breached too, we may not see further support in the LTC/USD pair until as low as $170.
What Do The Indicators Say?
Short term, the RSI on LTC looks a little oversold so we're seeing a bit of a bounce as I type this:
But the MACD is still showing a bearish reading:
On a 4 hour chart, the MACD is currently suggesting further downside is possible:
As it is on the daily:
On the plus side! Things are looking more neutral on the RSI from the daily chart:
We've even cleared the overbought readings on the weekly chart too:
Despite that (and despite having limited data on the Coinbase chart), if we look at the LTC/USD pairing on Kraken, we can see that Litecoin is still looking stretched on the monthly timeframe:
With that in mind, further downside could be possible, but I don't expect it to dip below $100.
As always, I could be very wrong!
Where do you think Litecoin is heading? Let me know down below!
Thanks for viewing!
For more great technical analysis and crypto related posts, see also: @toofasteddie, @gazur, @haejin, @ew-and-patterns, @pawsdog, @cryptomagic, @exxodus, @beiker, @allthereisislove, @lordoftruth, @masterthematrix, @cryptoheads and @tombort
Not intended as investment, financial or trading advice.
I think this is a symptom of traders selling out of all cryptos across the board and pumping up distinct coins. XRP for example, has been pushed to the 2nd highest market cap recently and it's growth just keeps climbing. I'd be cautious as that type of exponential growth isn't healthy and there may not be sufficient support established for it. Litecoin is still a coin that makes a significant percentage of my portfolio and it dropping down in the recent weeks is just an opportunity to load up on discounted prices. If my predictions are true, then once XRP dumps out, all that money is going to flood back into the rest of the market. Our only choice right now for LTC is to hodl.
I don't fully understand why XRP has been on such a bull run lately (largely FOMO probably), but it must be getting stretched, so I might look at some charts for that soon. :-)
I'm a big Litecoin fan too, so I totally agree with this bit:
Absolutely right! I'm just trying to see where the bottom might be and/or a trend reversal and I'll be grabbing some more too.
Thanks for your comment @dzra!