LTCUSD has broken below a short-term symmetrical triangle pattern to signal that a selloff is about to take place. However, price has yet to test support at the bottom of its ascending trend channel visible on the 4-hour time frame.
The short-term triangle spans 80.00 to 95.00 so the resulting selloff could be of the same height. Then again, losses could be limited if bulls defend the nearby channel support around 82.00 to 83.00.
Besides, the 100 SMA is crossing above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This suggests that bullish momentum could kick in and allow the uptrend to resume. The moving averages are also in line with channel support to add to its strength as a floor.
In that case, LTCUSD could find itself back inside the triangle or on its way back to the top of the channel around 95.00 to 96.00. RSI is still on the move down, though, so there may be a bit of selling pressure left but the oscillator is already closing in on oversold levels. Reaching this area could signal that sellers are tired and willing to let buyers take over.
Stochastic is also moving lower so LTCUSD might follow suit, but the oscillator is dipping into oversold territory to suggest fading bearish pressure. Turning back up could bring buyers in and allow support near the 80.00 handle to hold.
Litecoin has had its fair share of gains as cryptocurrencies had a nice run since the start of July but it has paled in comparison to bitcoin. After all, much of the spotlight has been on the more dominant digital asset and the anticipation for the SEC decision on bitcoin ETF applications.
Dollar strength and the rallies in traditional markets have also kept LTCUSD gains in check as investors are putting more attention in stocks and commodities again. Meanwhile, the dollar stays supported ahead of the US advance GDP release this week.
Check out the original article here.
Author: Sara Jenn