It seems that the big negatives I mentioned in my previous analysis are coming into play, and well.
Since yesterday, Litecoin has crashed in excess of 12% and is now trading at $3.980. If Litecoin fails to recover these losses and closes today’s session below the strong support of $4.100, we may see a huge decline of 25% in the coming sessions. And I strongly believe that we will see lower levels.
Let’s take a look at the technical analysis of the daily LTC-USD price chart above.
Litecoin Chart Structure – Litecoin had been consolidating above the support level for a considerable time, leading many to believe that a bottom may have been found. But, with technical indications working against this action, it was always a trap!
During the ongoing collapse, Litecoin hit a low of $3.805 before paring some losses. However, I expect the cryptocurrency to witness increased selling pressure on every rise.
Moving Average Convergence Divergence – The correction has seen the Histogram register a value of -0.3091, the lowest since June. MACD is constantly hitting lower grounds and is currently at 0.4024 while the Signal Line is maintaining its healthy stance