Litecoin (LTC) – Exhibit a bearish tone; expected to experience fresh lossesPosted on Wednesday, June 22 2022 at 9:03 pm GMT+0000
Litecoin (LTC) was forced to move back after staging a slight recovery over the previous week, thanks to resistance from the 20-day simple moving average which has been curbing upside movements for almost two months.
The persistent negative bearing of the 20- and 50-period simple moving averages is sponsoring the coin’s negative structure, while the oscillators are suggesting that the recent upside efforts are vanishing. The CCI has deflected off its zero line and is sloping downwards, and the RSI shifted south in the bearish territory. Additionally, the Stochastic oscillator seems to have reached a peak just beneath the 80-overbought mark, signifying that sellers may be getting ready for a new bearish wave.
If the above scenario materializes, the price may re-challenge the June 14th bottom at 40.32. A successful penetration here, could see the decline accelerating towards the round number of 30.00 before the sellers attack the more than two years low of 25.00, hit in March of 2020.
On the flip side, if bulls capture the area above the 20-day simple moving average, they will immediately meet the 23.6% Fibonacci retracement level of the March – June downfall at 62.45. Successfully breaching this too and the adjoining 50-day simple moving average of 65.62, the climb in price will extend to the 38.2% Fibonacci retracement at 76.15.
Summarizing, Litecoin continues to exhibit a bearish tone and is expected to experience fresh losses in the forthcoming sessions, should it fail to jump over the 20-day simple moving average. A decline below 40.32 will definitely bolster the negative tendencies.