- LTC faced rejection at $195 resistance point earlier in the week
- Head and shoulders pattern formed on intra-day chart, suggesting further decline is to come
- Trading volume dips almost 40 percent
Litecoin price analysis for the day suggests that the token is set for further decline over the coming days and weeks, after facing another rejection at the $195 point yesterday. Traders remain skeptical about the coin’s prospects since the news regarding Walmart‘s fake report on accepting Litecoin came into spotlight.
Despite earlier momentum pushing price as high as $196 on Thursday, bearish returns have taken over the market. Trading volume does not present a bullish sight either, dropping down to near 40 percent.
Litecoin’s price action has replicated that of the larger cryptocurrency market, as Altcoins recorded decrements across the board. Ethereum continues to consolidate just under $3,500, with other Altcoins such as Cardano, Ripple and Dogecoin going down around 4 percent each.
However, Solana comes off as a big winner in the market, upping 10 percent to rise above $160. Bitcoin also showed some promise in the market, consolidating above $48,000.
LTC/USD 24-hour chart: Head and shoulders pattern appears, presenting a bearish outlook
The 24-hour chart for Litecoin price analysis shows formation of a head and shoulders pattern which is a classic bearish sign. Selling pressure maintains above $180, where bulls are trying to defend. Any movement below this mark is where volume profile gets thinner.
The RSI gives a grim outlook as well at a value of 56, suggesting there is very little potential in the market. The skepticism from traders can be owed to the controversy with Walmart. The head and shoulders pattern forms as buyers attempt to try and push price upwards beyond $200, only for sellers to come in and push price back to $180.
LTC/USD 4-hour chart: Price moves close to 25 and 50-day MA
The 4-hour chart also presents a bleak outlook for Litecoin, as price moves below 25 and 50-day exponential moving averages. The moving average convergence divergence (MACD) is also well below its neutral zone, suggesting there is little buyer interest at the current trend.
With these technical indicators, it is expected that LTC will trade well-below $190 in the immediate term. Resistance level has shifted from $195 to $188.97 while support settles at $170.41 which are the levels to look out for.
Litecoin price analysis conclusion
Technical indicators in Litecoin price analysis presents a distinctly bearish outlook for the token. Since the Walmart controversy, price has been unable to settle and continues to fall freely. The RSI sits at lowly values, suggesting there is little potential in the market.
Price is expected to test support at $170 before buyers come in and push towards consolidation. At current trend, it is a given that traders will observe the market before initiating support.
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