Litecoin has tumbled roughly 5 percent as Bitcoin went weak and has neared the downward sloping support.
In the previous Litecoin price technical analysis titled Breaks Out, Buy Near Support, I mentioned that any pressure on Bitcoin will get reflected in Litecoin as well. It was also stated that the support of $3.820 should prevent immediate losses. As can be seen, the cryptocurrency touched an intraday low of $3.820 before retracing.
Technical analysis of the daily LTC-USD price chart and the action in the Bitcoin market compel me to be only cautiously optimistic on Litecoin.
Litecoin Chart Structure – Now trading at $3.851, Litecoin has come close to the downward sloping support trendline. However, the support level must be revised accordingly to $3.720 now, which also happens to be the recent bottom. Therefore, a close below this level will puncture the positive sentiments in Litecoin.
Moving Average Convergence Divergence – The MACD, Signal Line and Histogram are lingering in the sub-zero region with respective values of -0.0748, -0.0187 and -0.0560.
Momentum – The cryptocurrency has been unable to shrug off