Litecoin has finally awarded the market participants for their patience and has given a substantial move on the downside. It has cracked roughly 8 percent following the breakdown in Bitcoin to trade at $3.939.
With this decline, Litecoin has ended its consolidation and looks set to drop further going into the weekend.
Here are the latest technical considerations of the daily LTC-USD price chart.
Litecoin Chart Structure – Litecoin is respecting the lower top chart structure as price advances continue to get sold. Investors are exiting Litecoin and short-term market participants are aggressively shorting the cryptocurrency at higher levels. The next immediate target is the previous low of $3.180, below which we should see $3.000 on Litecoin.
Fibonacci Retracement – The 23.6% Fibonacci retracement proved to be too strong an obstacle for the bulls to cross.
Moving Average Convergence Divergence – The MACD has nearly erased all the gains as it succumbed to 0.0080. The Signal Line remains close with 0.0995 and the Histogram reads a value of -0.0915.
Momentum – The negative Momentum reading of -1.0228 should encourage the bears to go aggressive.
Money Flow Index – The MFI has dipped below the 50-mark for the first time in over a week. The latest value is 49.7971.
Relative Strength Index – The RSI has budged significantly to 45.3766.
Bitcoin has generally led the way for price action in Litecoin, and as it falls, Litecoin can also be seen dropping. I am expecting a roughly 10% decline in Bitcoin if it closes below $275. Since Litecoin is more volatile, the depreciation can be of a larger magnitude.
Short Litecoin now or on rallies based on your risk preferences by maintaining a stop-loss above $4.500. Remain connected with the Bitcoin market for more clues.
Greece’s deal with its creditors is still in the works, however, I am confident that everything will be worked out fine. In case of any negative shocks, we may witness a speculative surge in prices of cryptocurrencies.