- Both of the 50 and 100 Simple Moving Averages will limit gains in case of a reversal.
- Expect LTC/USD to bounce in the direction of $60 and probably test the resistance at $62 before staging a move towards $70.00.
LTC/USD is recording the highest losses among the top ten cryptocurrencies today. The losses come after the crypto failed to break past the high formed at $61.2. A look at the hourly chart shows Litecoin trending lower below $60 (current pivotal level). In fact, it has corrected downwards slightly over 2% on the day to exchange hands at $59.35.
Besides, the strongly bearish trend is likely to continue following the failure by the 50 SMA to double-cross above the longer term 100 SMA 1-hour. Both of the 50 and 100 Simple Moving Averages will now limit gains in case of a reversal.
Taking you back to the trend towards the end of last week; we saw LTC/USD revive the uptrend from the support at $55.00. The price scaled the levels and closed the week’s trading on Sunday in bullish around $62.00. However, the trend turned bearish on Monday morning (GMT) where Litecoin experienced a flash drop below $60.00. Declines progressed below $59.00 but support was formed between $58 and $59.00 (key zone on the 1-hour chart).
The ongoing bearish trend is likely to test this support zone that has been tested severally. Therefore, I expect a bounce heading to $60 and probably test the resistance at $62 before staging a move towards $70.00. However, it important to note that the bears are mainly in control and the RSI on the same hourly chart is sloping downwards. Similarly, the MACD has slipped under the mean line (0.0) and does not seem to be in a hurry to recover. Traders should, therefore, look out for other support levels such as $55.00, $53.00 and $45.00.
LTC/USD 1-hour chart