Litecoin had an extremely volatile weekend; the price first collapsed more than 15% from the previous observation of $3.085 to $2.614 before sharply rising up to pare most of the losses. However, Litecoin can be seen hitting a roadblock near $3.050.
Litecoin is currently trading near the resistance level, at $2.990.
The 240-minute LTC-USD price chart tells that the cryptocurrency is trading near the strong supply zone and technical indicators are favoring a bearish outlook.
Litecoin Chart Structure – As can be seen from the above chart, the cryptocurrency has challenged the resistance line (marked) several times after the U-shaped recovery. However, the price has to close and sustain above $3.050 if hefty gains are to be realized.
Moving Average Convergence Divergence – The MACD indicator does not indicate a bullish undertone. While MACD has dropped to 0.0811, the Signal Line has plummeted to 0.1021, thereby pressing the Histogram value into the negative region. The latest Histogram value is -0.0210.
Momentum – Even as the price sustains at near resistance