Assessing if Litecoin [LTC] is targeting $50 as its next stop
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
LTC- 1 Day Chart
On the daily chart, the price has made a series of lower highs and lower lows going as far back as late November. In fact, since November, no swing high of the downtrend (lower highs) has been breached even once, which suggested strong bearish pressure.
The $105-$115 area has been important in the past, for example in July last year, when the price retested this area and rallied nearly as high as $300. In the past few months, no significant reaction was seen in this area except in January, when the price bounced from $110 to $140 but was quickly pushed lower.
In the past few weeks, the psychological $100 level has been lost to the bears. On lower timeframes, the $75 level had some significance. Due to the development of a hidden bearish divergence (white) between price and momentum, the $75-$80 area can be used to enter short positions.
In the past two weeks, the RSI has registered a higher high (white) while the price made a lower high. This hidden bearish divergence is a signal of a continuation of the downtrend, and the $60-$66 area could be retested once again and possibly broken. The RSI has also been below the neutral 50 since April, to show an ongoing bearish trend.
The Awesome Oscillator was also well beneath the zero line to show strong downward momentum. The OBV slid lower as well and was beneath the support it established in March. The Chaikin Money Flow climbed back above the -0.05 mark, but could soon be pushed lower.
The indicators showed strong selling pressure and consistent bearish momentum, while the price charts also showed a bearish structure. The $75 area could be used to enter short positions on the coin.