Litecoin (LTC) Price Outlook, Chart and Analysis:
- Descending triangle formation broken to the downside before rebound.
- Cluster of technical indicators could produce another sharp move.
IG Client Sentiment Data shows how retail are positioned in a variety of cryptocurrencies. See how daily and weekly positioning can affect our trading bias. Litecoin (LTC) trade data shows 92.3% of traders are net-long, a strong contrarian bearish signal.
Litecoin (LTC) Charts Shows Bulls and Bears Breaking Even
The recent sharp rally and muted sell-off on the daily Litecoin (LTC) chart is likely to provoke renewed volatility as technical indicators are set to collide. While the longer-term trend remains positive, with a series of higher lows in place form the start of the year, the recent descending triangle formation did not prompt a bullish reversal at the first attempt. The support line of the triangle was broken, and closed below, but the recent sharp pull-back now puts the current price at the junction of the down slope and support. The price is now sitting on the 50-day moving average and is just below the 20-day ma and this confluence of indicators could prompt a sharp move, one way or the other, in the near-term.
The CCI indicator has moved out of oversold territory – the last time this happened was in late 2018 – and suggests that sellers are running out of steam in the near-term. A break below the recent $64.7 low would see the last higher low around $60 as a potential target while a break and close back above the down slope may see bulls test $84 ahead of the recent $100 high.
A Guide to Day Trading Bitcoin and Other Cryptocurrencies.
Litecoin (LTC) Daily Price Chart (December 2018 – May 2, 2019)
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on Litecoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
