Litecoin’s rally to 1.48 early last week petered out┬áby┬ámid-week, and the cryptocurrency continued to drift lower into the weekend. By the time we start the new week, it has fallen below last week’s low, to 1.30.
The 1H chart shows price crossing back below the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs). This reflects revival of the bearish bias. The 1H RSI also dipped below 30, even below 20, showing strong bearish momentum. As we begin the week, price is in a rebound from 1.30. Now if the bearish trend has been revived, a pullback should find resistance around 1.38, the 100-hour SMA and a consolidation low from last week. However, if price climbs back above 1.41, ltucsd would likely break above a couple of key resistance factors, and therefore would take away the bearish outlook. This will bring litecoin back into choppy, sideways, consolidation mode.
In the 4H chart, we can see that the prevailing downtrend in litecoin has not changed. Although the bearish momentum was lost last week, it has been regained as the 4H RSI dipped below 30. The 200-, 100-, and 50-period SMAs remain in bearish alignment (200-, above the 100-, above the 50-period), and are still sloping down with price trading under all three of them. Price never even got above the 100-period SMA last week.
With last week’s bullish attempt now concluded as a brief bullish correction and with a new low at 1.30, which is below last week’s low, litecoin has the parity level in sight.
Parity (1.00) was tagged earlier in April by a sporadic spike down. litecoin┬ánever recovered above the high right before that spike, which means it was NOT an exhaustion “clear-out” type of spike. On the other hand, as price action has proven so far, it is a tail that would be eventually “chewed” through by the continuing bearish mode.
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