Litecoin is trading 0.31% or $0.014 down at $4.536 as selling pressure increases. While the price sustains above the support provided by $4.100, it may seem that a base may have been hit, but before establishing that we must take into consideration what the technical indicators are conveying. And I think they are pointing towards what was discussed in my previous analysis titled This May Turn Real Ugly!
Litecoin Chart Structure – Litecoin has been repeatedly testing the support line but has failed at achieving a higher high on the rebound. The cryptocurrency is witnessing what is aptly called a “relief rally” even as the trend remains down.
Moving Average Convergence Divergence – Among the big negatives, first is MACD. As can be seen from the daily LTC-USD chart above, MACD continues to fall while the Signal Line holds. The latest MACD, Signal Line and Histogram values are 0.5306, 0.7497 and -0.2191 respectively.
Momentum – Another indicator which coerces me to think that the current consolidation may well be a trap is the Momentum indicator. The Momentum indicator has swiftly accelerated on the downside and given up all the