Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
Candlewicks on every day charts into an space of former provide, presently demand zone can see a bullish impulse transfer away from the liquidity pocket. Such a situation may very well be brewing for Litecoin on the every day charts. Regardless of the worry within the crypto markets in latest weeks, and though the general development for the coin was bearish since November, a area on the charts introduced itself as a spot the place bulls might bid closely at.
LTC- 1D
Supply: LTC/USDT on TradingView
The downtrend has been relentless since mid-November. 4 months in and the development was but to be damaged. On the every day chart, the newest of the decrease highs lay at $116, and bulls would wish to push previous this stage to interrupt the bearish market construction.
In late February, information of a Russian invasion into Ukraine broke out and created panic within the markets, and the worth noticed a nasty wick to the draw back that reached $90 to kind a swing low.
It was doable that the worth would descend to those lows as soon as extra, looking for liquidity. Late shorters may be trapped slightly below $90, which might create gasoline ought to the worth reverse and shoot towards $120.
Rationale
Supply: LTC/USDT on TradingView
Each the 21 and 55 SMAs (orange and inexperienced respectively) had provided resistance to the worth just lately, and LTC has crushed the 21 SMA. Nonetheless, there was a confluence of resistance from transferring averages and former demand, now provide zones simply above $109, at $113.
The RSI stood at 50.69 and confirmed that no actual development was behind Litecoin up to now two or three weeks. The OBV has been trending steadily downward, and promoting strain has been unwavering. The CVD confirmed some shopping for strain in latest days, however this was probably not sufficient to flip the downtrend by itself.
The Aroon indicator additionally confirmed that the previous 4 months have been dominated by downtrends, with minor retracements thrown into the combination.
Conclusion
If the $90 lows are revisited, a reversal candle or bullish divergence can be utilized to set off an entry to a protracted place focusing on $120 and probably $145. Nonetheless, the development was bearish. There was a touch that worth might vary between $90 and $144 within the months to come- however one other rejection at $140 is required to make that conclusion.
