Litecoin [LTC] Technical Analysis: Bears dominate as LTC bleeds over the weekend

Cryptocurrencies, including Litecoin, have taken a beating since the turn of the year. Litecoin [LTC] seemed to have been building some stiff bullish resistance when the price of LTC plunged considerably 48 hours ago. In fact, it has a negative growth rate of 4.81% over the last 24 hours.

The price of Litecoin [LTC], at the time of writing, was $31.21. LTC remains the seventh-largest cryptocurrency in the world, with a market capitalization of $1.879 billion. It also had a 24-hour trading volume of $730 million, contributed significantly by DOBI Exchange via the trading pair LTC/BTC.

1-hour

The one-hour chart suggests a significant downtrend that has taken shape in the LTC market, extending from $34.123 to $31.237. This follows a brief uptrend that extended from $32.285 to $34.398. The resistance point holds firm at $34.398 while the LTC market’s support point at $32.589 has already bled out.

The Bollinger Bands in the chart are expanding considerably, suggesting that there is a degree of volatility in the LTC market and that price movement is likely to be more than just sideways.

The Chaikin Money Flow indicator has the reading line creeping below zero. This suggests that the market has a bearish trend and money is likely to be flowing out of the LTC market.

The Relative Strength Index suggests that the LTC market is bearish and moving away from the oversold zone and that soon, buying and selling pressures in the market may even each other out.

1-day

The long-term, one-day chart indicates that LTC is on the trajectory of a month-long downtrend extending from $125.420 in June of last year to $40.155 early this January. In the process, the brief uptrend extending from $29.304 to $40.079 was overhauled. Both the support and resistance points are holding firm at $23.346 and $40.233 respectively.

The Parabolic SAR suggests that contrary to the larger downtrend, some stiff price support has pushed the market to the green. An albeit brief, a bullish run may be in the offing.

The Aroon indicator has the Aroon Down Line over the Aroon Down Line and closer to the mark of 100. This suggests that the LTC market is likely to be bearish in its outlook in the near future.

The MACD indicators suggest that despite some movement by the bulls, the bears retain the upper hand and the LTC market remains in the latter’s control.

Conclusion

Both the charts, projecting the short term and the longer term futures of the LTC market suggest that despite some bullish movement, it is likely that the market will remain in the red zone and have a bearish outlook in the coming days. However, considering the significant drop in value over the past 48 hours, it is difficult to say how prolonged or how adverse such a trend shall turn out to be.