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Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author.
Only a week in the past, Litecoin [LTC] rallied to the $61 stage however confronted rejection there. This was a bearish growth, particularly for long-term traders. The market construction continued to stay bearish, and the psychological $50 stage has been defended prior to now few days. Nonetheless, promoting strain started to climb as soon as extra.
LTC- 12-Hour Chart
Supply: LTC/USDT on TradingView
In Could, LTC fashioned a variety from $61 to $74 (white). One week into June, the lows of this vary failed to carry. The wave of intense promoting noticed Litecoin drop as far south as $40.2. Within the following weeks, the worth noticed a rally again to the $61 space.
The Fibonacci retracement ranges (yellow) plotted confirmed the $61 mark to be the 61.8% retracement stage of the transfer from $74 to $40.3.
Furthermore, the $61 space was additionally the low of the vary fashioned in Could. The confluence of those two resistances was robust, and LTC confronted rejection from the $61 zone.
LTC- 4-Hour Chart
Supply: LTC/USDT on TradingView
The rejection from the $61 space was anticipated to seek out some help within the $51-$52 space (cyan field). This was a zone of demand, and it additionally had a bullish order block on the four-hour chart. Furthermore, this zone was simply above the longer-term horizontal help stage at $50.4.
Subsequently, we now have confluence as soon as extra between the bullish order block and a horizontal help stage. But, the worth bounce was solely a weak one from this zone.
On two events prior to now few days, a bounce was witnessed. Every of the bounces was unable to shut a buying and selling session above $54. On the time of writing, the worth appeared to slide under each the $50.4 help stage in addition to the demand zone above it.
Supply: LTC/USDT on TradingView
The four-hour Relative Power Index (RSI) slipped under the impartial 50 line just a few days in the past and retested the identical as resistance. This recommended that the momentum had swayed in favor of the bears. The Chaikin Cash Move (CMF) additionally agreed and confirmed that the previous few days have seen important capital move out of the market.
Then again, the On Stability Quantity (OBV) didn’t present heavy promoting strain. The truth is, over the previous week, it has been capable of climb larger on the charts and noticed solely a minor dip over the previous three days.
Conclusion
The value motion of LTC in latest buying and selling classes confirmed that the $50-$52 space was an important space of help. If there was a session shut beneath the psychologically essential $50 stage, it may see Litecoin start to tumble a lot decrease down the charts.
Subsequently, aggressive sellers can look to enter quick positions on a session shut beneath $50, with a stop-loss simply above $52. The Fibonacci retracement stage at $48 may provide some weak help, however under it, the $40 space beckoned.
