THELOGICALINDIAN - Litecoin has expectedly answerable us with a 13 percent bead during the weekend as Bitcoin crumbles beneath pressure
We discussed in Bounces Off Support that alike while the abstruse indicators were absolute for Litecoin, we charge abide on the abbreviate side. And that has paid off well; the cryptocurrency succumbed to a low of $3.852 afore recouping some losses. Now at $4.041, Litecoin is still in bound claws of the bears.
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Technical assay of the circadian LTC-USD amount blueprint reveals that Litecoin may attestant abandon by the beasts as bearish burden mounts, and that we may see a new low in the advancing sessions.
Litecoin Blueprint Structure – Since hitting its aiguille of $8.650 in July, Litecoin’s blueprint has been broadly a lower top, lower basal anatomy (marked in the chart). As rallies are actuality awash into and lower cheers are actuality hit on a appropriate basis, there is a aerial achievability of Litecoin trading at $3.000 in the advancing weeks.
Fibonacci Retracement – Litecoin has actually breached the 23.6% Fibonacci retracement of $4.471, which exposes it to added losses.
Moving Average Convergence Divergence – The MACD continues to coquette with the Signal Line thereby attached the Histogram to abreast the 0-mark. The best contempo ethics of MACD, Signal Line and Histogram are 0.0756, 0.1469 and -0.0713 respectively.
Momentum – The Momentum has assuredly activated abrogating readings with a amount of -0.5352.
Money Flow Index – The MFI is now at 58.8424.
Relative Strength Index – The RSI starts August on a bearish note, comestible beneath the 50-mark. The latest amount is 47.2081.
Conclusion
The blueprint anatomy compels me to accept that a new low advancing in Litecoin, however, it may analysis the backbone of the traders first. So, do not allow in abrupt trading, and actualize abbreviate positions alone on rallies. The stop-loss for the abbreviate barter will be placed abysmal at $4.500, so position accordingly.
