Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
A latest report highlighted that the day by day transaction depend on the Litecoin community has been just about the identical as three months in the past, standing at simply over 100k. Equally, the energetic tackle depend has additionally remained unchanged, hovering round 300k, the identical quantity it was again in February. This urged an absence of development when it comes to customers and buyers for Litecoin. Mixed with the worry available in the market, the sturdy downtrend of Litecoin on the charts was reasonably unsurprising.
LTC- 1 Day Chart
On the day by day chart, the value has made a collection of decrease highs and decrease lows going way back to late November. In reality, since November, no swing excessive of the downtrend (decrease highs) has been breached even as soon as, which urged sturdy bearish strain.
The $105-$115 space has been essential prior to now, for instance in July final yr, when the value retested this space and rallied practically as excessive as $300. Prior to now few months, no vital response was seen on this space besides in January, when the value bounced from $110 to $140 however was rapidly pushed decrease.
Prior to now few weeks, the psychological $100 degree has been misplaced to the bears. On decrease timeframes, the $75 degree had some significance. Because of the growth of a hidden bearish divergence (white) between worth and momentum, the $75-$80 space can be utilized to enter brief positions.
Rationale
Prior to now two weeks, the RSI has registered a better excessive (white) whereas the value made a decrease excessive. This hidden bearish divergence is a sign of a continuation of the downtrend, and the $60-$66 space could possibly be retested as soon as once more and presumably damaged. The RSI has additionally been under the impartial 50 since April, to indicate an ongoing bearish development.
The Superior Oscillator was additionally nicely beneath the zero line to indicate sturdy downward momentum. The OBV slid decrease as nicely and was beneath the help it established in March. The Chaikin Cash Stream climbed again above the -0.05 mark, however may quickly be pushed decrease.
Conclusion
The indications confirmed sturdy promoting strain and constant bearish momentum, whereas the value charts additionally confirmed a bearish construction. The $75 space could possibly be used to enter brief positions on the coin.