Litecoin fell more than 5 percent over the weekend as weakness returned to haunt the cryptocurrency markets. The Bitcoin market is also struggling to cope with the selling pressure and has returned to its crucial support of $220.
Litecoin is currently trading at $3.330 and is well within its medium term trading range.
In the previous Litecoin price technical analysis Sell on Rallies, we discussed how Litecoin remains weak and any rise in the valuation can be used to go short. That holds valid for even today.
The latest technical indicators are nowhere positive or indicate that a reversal may be around the corner, and hence, I remain bearish on the cryptocurrency.
Litecoin Chart Structure – After crossing $3.500, bulls aimed for the higher end of the trading range (marked in the chart above) but were soon served with fresh selling pressure which pushed the price down to a low of $3.231. The support or the lower end of the trading range is near $3.000 while the resistance is close to $3.610.
Moving Average Convergence Divergence – The MACD has crashed to another low of -0.2078 while the Signal Line has hit -0.1507. The Histogram is depicting the bearishness with a value of -0.0571.
Momentum – The Momentum indicator reflects no change in the sentiment with its relatively unchanged value of -0.6305.
Money Flow Index –The MFI is now at 36.8091.
Relative Strength Index – The RSI value has once again dropped below the 40-mark to 38.2243 as Litecoin plummets.
I continue to remain bearish on Litecoin tracking the technical indications derived from the daily LTC-USD price chart.
If the Litecoin market offers you a price rise, go short. However, if the price drops, do not buy immediately and wait for some consolidation.
Stay connected with the Bitcoin price action for more clues; a close below $220 cannot bode well both for Bitcoin and Litecoin.