Litecoin is currently trading at $2.922, up 1.78 percent as the cryptocurrency extends its short covering-fueled rally. However, I do not see Litecoin advancing significantly from here on and expect the bears to make a comeback very soon.
What is aiding my bearishness is the lingering pessimism in Bitcoin, in addition to the technical considerations derived from the daily LTC-USD price chart.
Many of the participants have repeatedly asked me why I did not factor in or mention the block reward halving in my earlier analyses. It is because I always believed that the market had priced in that well, and any accompanying move would be purely speculative. Now that the mining reward halving has been achieved, there has been no major shakeup in the Litecoin market.
Litecoin Chart Structure – For the past couple of sessions, Litecoin has been limited to a high of $3.051. If the cryptocurrency fails to reach a level higher than this in the future sessions, then expect another steep fall.
Moving Averages – Litecoin recently took support from the 200-day SMA before rebounding.