Litecoin (LTC) – Rekindling the negative tone

Litecoin (LTC) – Rekindling the negative tone

Posted on Monday, July 11 2022 at 8:40 pm GMT+0000

Litecoin’s (LTC) recent positive thrust off the 40.32 multi-month low faltered in the vicinity of the 60.00 key level and the price dropped once again below the 20-day exponential moving average.

The negatively charged exponential moving averages are endorsing the medium-term bearish outlook, while the oscillators are reflecting the recent increase in the negative impetus. The Stochastic %K line crossed below the %D line and seems ready to dive into the oversold waters, while the RSI shifted course at its equilibrium level of 50. Additionally, the IMI is stretching its descent in bearish territory.

In the meantime, following a daily close below the last Tuesday’s low of 47.89, sellers are expected to push harder to breach the last bottom recorded on the 14th of June at 40.32. Should their efforts prove successful, the negative pressure will take an additional boost, and the way will be paved towards the 161.8% Fibonacci extension level of the 40.32-60.44 bullish wave at 27.89. Further lower, the sell-off will likely pick up speed towards the 227.2% Fibonacci level at 14.73.

Alternatively, a jump over the nearby 20-day exponential moving average followed by a sustainable step above the 26th of June high at 60.44 fortified by the 55-day exponential moving average will shift focus to the 72.00-75.00 congested area encapsulating the 18th of May top. Overstepping this barrier will bolster buying appetite to the 100.00 psychological number, near which the 12th of April bottom is located.

To summarize, Litecoin is exhibiting a strong negative bearing, which is expected to intensify following a break below the 40.32 support. That said, a successful climb in the price over the 60.44 high may upgrade the medium-term technical picture to bullish.