In my previous analysis Gains Erased, I had laid down a few technical considerations which forced me to think that another round of selling is in the offing for Litecoin. Today, I am going to bring to your attention another big divergence which may eventually prove to be damaging to the cryptocurrency.
But before that, here is an update on the price: Litecoin is currently trading up $0.056 or 1.52% at $3.732.
Presented below are the technical observations of the daily LTC-USD price chart.
Litecoin Chart Structure – Similar to Bitcoin, Litecoin has completed six straight days of no significant price movement. The price has been oscillating between $3.430 and $4.100 but nothing challenging has been observed.
Moving Average Convergence Divergence – Even as MACD slows down on its slide, the Histogram still remains in the negative region with a value of -0.1862. The latest values of MACD and Signal Line are 0.0102 and 0.1964 respectively.
Momentum – The negative Momentum readings continue to haunt Litecoin. The most recent observation was made at -0.8909.
Money Flow Index – But, the real negative comes now. The MFI value has succumbed below the