As was expressed in Danger Looms, Litecoin witnessed a strong selloff intraday, crashing by a little more than 20%. I expected the cryptocurrency to hit $3.100 but the price reversed from $3.180. Yesterday marked the fourth straight day of losses for Litecoin.
Currently, Litecoin is trading with a deep cut of 6.33% since yesterday’s observation.
From a technical perspective, it looks like Litecoin will continue to devalue against the US dollar and hence, rebounds should be used to go short in the counter.
Litecoin Chart Structure – After breaching the crucial support of $4.100, the cryptocurrency succumbed under selling pressure to $3.180. Now, even while the price trades significantly above from the lows, I feel that the damage has been done and Litecoin will head further lower in the coming sessions.
Moving Average Convergence Divergence – Histogram losses have widened to -0.3591 while the MACD and the Signal Line have values of 0.2899 and 0.6490 respectively.
Momentum – The Momentum indicator reflects the underlying bearishness with a value of -1.4420.
Money Flow Index – The MFI has declined for the fifth consecutive day; it is currently down to 40.9027.
Relative Strength Index –