Litecoin (LTC) – Exhibiting a strong negative tendency inside the descending regression channel

Litecoin (LTC) – Exhibiting a strong negative tendency inside the descending regression channel

Litecoin (LTC) has been gradually losing ground inside the falling regression channel stretched from the March 30^th peak, as the bounce off the 18-month low posted on May 12^th faltered in the vicinity of the 75.00 mark.

The persistent negative bearing of the 20- and 55-day exponential moving averages is feeding a dampening picture for the cryptocurrency, while the oscillators are suggesting that the bearish momentum is starting to intensify again. The momentum indicator dropped back below its equilibrium line after a failed attempt to overcome the previous high, while the Stochastics reclaimed a negative charge in the bearish region.

So, the base scenario is for the price to slice through the middle-line of the channel and slump towards the May 12^th low of 52.00. If the mounting selling interest overrun the latter, the sellers may then eye the September 2021 low of 41.64.

Alternatively, if buying interest picks up, initial resistance could emanate from the 20-day exponential moving average at 66.10 and the neighboring upper-line of the channel ahead of the May 18^th high at 74.29. Not too much higher, the 55-day exponential moving average seen around 79.00 could challenge buyers’ efforts to push for a more significant rally. Should it prove easy to escape, the price will jump towards the February 24^th inside swing low of 91.52.

All in all, Litecoin is exhibiting a strong negative tendency inside the descending regression channel, and odds for an extension beneath 52.00 are currently elevated. Only a thrust beyond 74.29 will bring some optimism for a remarkable recovery.