Home Litecoin News LTC/USD Technical Outlook: Litecoin Costs Plummet in direction of Yearly Low

LTC/USD Technical Outlook: Litecoin Costs Plummet in direction of Yearly Low

5 min read

Litecoin is down practically 60% year-to-date with costs approaching the yearly lows after breaking February trendline assist earlier this week. The decline is approaching preliminary areas of assist that would supply a reprieve. Listed below are the important thing ranges that matter for LTC/USD.

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Litecoin Day by day Value Chart (LTC/USD – Log)

Notes: Litecoin costs have greater than 20% for the reason that begin of June with the decline now eyeing confluence assist right here round ~89.23. This area is outlined by near-term channel assist (purple), the decrease parallel of the broader pitchfork (blue) and the September high-day shut. Observe longer-term trendline extending off the June lows is available in simply decrease and IF costs are going to see any reduction, this might be the primary spot to look.

Preliminary resistance stands with the 50-line round 101/02 with broader bearish invalidation on the month-to-month open at 118. A break decrease from right here targets the 11/29 swing low / 88.6% retracement at 76/78 – search for a stronger response there.

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Backside line: The momentum profile and broader value motion suggests additional losses in retailer for Litecoin. That stated, that is the primary are of interruption which restrict losses near-term. From a buying and selling standpoint, a very good space to scale back quick publicity with a rebound off this mark prone to supply extra favorable short-entries whereas beneath the median-line. A break beneath 76 would possible see speed up losses for the cryptocurrency with such a state of affairs risking a drop in direction of 54.26.

Litecoin IG Shopper Positioning (LTC/USD)

Litecoin Trader Sentiment - LTC/USD

  • A abstract of IG Client Sentiment exhibits merchants are net-long LTC/USD- the ratio stands at +13.79 (93.2% of merchants are lengthy) – bearish studying
  • Traders have remained net-long Litecoin since Dec 25th; value has moved 63.7% decrease since then
  • Lengthy positions are 7.four% decrease than yesterday and 5.2% decrease from final week
  • Brief positions are 1.9% increased than yesterday and 43.2% increased from final week
  • We usually take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests Litecoin costs might proceed to fall. But merchants are much less net-long than yesterday and in contrast with final week and the recent adjustments in sentiment warn that the present Litecoin value pattern might quickly reverse increased regardless of the actual fact merchants stay net-long.

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— Written by Michael Boutros, Technical Forex Strategist with DailyFX

Comply with Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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