LTC is likely to retest its 200-day MA
Litecoin is facing significant challenges. It had formed a rising wedge, a very bearish pattern, and is now breaking down. It experienced a strong price increase from its lows, but after reaching a resistance block, it lost momentum and is now way overbought. A substantial drop is expected and imminent.
The 50-day MA is the last major support level for Litecoin before a major drop.
The RSI is showing extremely bearish negative divergences, which will likely drive the price down quickly and sharply.
The MACD is also exhibiting negative divergences and is very bearish.
Overall: the hype and FOMO around this cryptocurrency are over. It has lost the momentum it had during this entire move. After an obvious breakout from the rising wedge, there is a slim chance of not experiencing a significant drop. It could consolidate around the 50-day MA, but it will eventually drop significantly. Retesting the BigRed, aka the 200-day MA, is almost certain. Support could be found there, although I think it will fall further with a lower Bitcoin price.
Support block at around 50 should hold price for a bounce, but as I said it will likely be only bounce.
The 50-day MA is the last major support level for Litecoin before a major drop.
The RSI is showing extremely bearish negative divergences, which will likely drive the price down quickly and sharply.
The MACD is also exhibiting negative divergences and is very bearish.
Overall: the hype and FOMO around this cryptocurrency are over. It has lost the momentum it had during this entire move. After an obvious breakout from the rising wedge, there is a slim chance of not experiencing a significant drop. It could consolidate around the 50-day MA, but it will eventually drop significantly. Retesting the BigRed, aka the 200-day MA, is almost certain. Support could be found there, although I think it will fall further with a lower Bitcoin price.
Support block at around 50 should hold price for a bounce, but as I said it will likely be only bounce.
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One more proof of how TA is working on crypto too and how a rising wedge, if drawn correctly, is a powerful bearish formation.
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And yet again LTC is in some king of rising wedge/bear flagish formation. It is at the top of the trend line, meaning it is almost certain we will retest the lower trendline, and than we will see if we will find support or new bearish formation will be triggered.
If break lower trend line bulls it will be over for litecoin, drop will be massive.
And yet again LTC is in some king of rising wedge/bear flagish formation. It is at the top of the trend line, meaning it is almost certain we will retest the lower trendline, and than we will see if we will find support or new bearish formation will be triggered.
If break lower trend line bulls it will be over for litecoin, drop will be massive.
Consistency is the key of success....