After finally climbing past the $320 mark, Litecoin price failed to continue its bullish rally, and the price has dropped to just above $248. While the price at the time of writing holds just below the $248 mark, the price volatility is high, and the chances of a bearish reversal are also high; hence the price may fall further in the immediate future.
The broader cryptocurrency market observes a bearish sentiment across the last 24 hours, with most major cryptocurrencies recording a loss across the timeframe. Main currencies which had a loss include Ripple‘s XRP and BNB that record a -10.86 and a -5.29 percent decrease, respectively. Meanwhile, Bitcoin and Ethereum record a -3.78 and a -4.82 percent decrease, respectively.
Across the technical indicators, the MACD exhibited a bearish reversal two days ago and has remained bearish since. As the price action stagnated, the MACD remained low as well, suggesting low bearish momentum in the markets. Currently, while both EMAs move downwards, the 12-EMA is separating from the 26-EMA showing an increasing bearish momentum at the time of writing.
The RSI is currently trading in the neutral zone just below the 40.00 mark and has been in the neutral region for the past two days seeing high bearish momentum. Today the RSI has had continuous spikes towards the oversold region, suggesting increasing bearish momentum; however, at press time, a small spike towards the overbought region has emerged, suggesting that the buyers are fighting back.
The Bollinger bands are currently wide and will expand in the future due to the presence of dark green candlesticks. The bands’ expansion suggests an increase in volatility for the Litecoin price, which is currently just above $248.However, as the price is below the band’s mean line, the price may see a bearish reversal.
Overall, the 4-hour technical analysis issues a sell signal with 13 of the total 26 major technical indicators suggesting their support for a bearish movement. On the other hand, only four indicators issue a buy signal suggesting a bullish retracement. Meanwhile, nine indicators sit on the fence, issuing no support for either side of the market.
The 24-hour technical analysis does not share this sentiment and issues a weak buy signal with nine of the 26 indicators not issuing any signals at the time of writing. Meanwhile, ten indicators issue a bullish momentum against, seven indicators which issue bearish movement.
Traders should expect Litecoin price to bounce back from the $240.00 mark as the price action finds strong bullish support at the level. The technical indicators also suggest a reversal is possible at the current price level. However, the price faces strong bearish pressure, and the price may be rejected from the $260.00 mark.
Traders should expect Litecoin price to rise towards the $280.00 mark, with further upwards movement unlikely due to selling pressure.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on April 20, 2021 1:37 pm
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