In recent days, some cryptos have held up better than others. The technical setups are broadly the same, although some assets have already taken the lead losing major technical thresholds. Today, discover a complete technical analysis of the LTC asset in order to take stock of the key levels of the asset, the bias to consider and the balance of power with bitcoin.
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LTC manages to preserve its POC but until when?
First, you can see the strength of the downtrend on LTC since December 2021. This is when it lost its EMA confluence and failed to break out of it to the upside again. On numerous occasions, LTC made a bounce to seek the 32 EMA before starting to fall again. Now, the asset is moving between a high of $74.40 and a low of $40.30. Note that these last few weeks have been complicated since the LTC has been repeatedly rejected on resistance at $64.50. The sellers are clearly present and do not let go.
On the other hand, LTC fights for preserve a technical confluence Who is here hub area at $53.99 (blue line) and the Point Of Control (red line) at $52. A clear loss of these two levels will alert us to a more significant decline to come towards the technical levels located lower. At first, we can consider the 49.38 dollars (Value Area Low). Now, let’s move to lower time frames to better study the price action.
Is a rebound scenario possible?
On the daily scale, LTC is struggling with its EMA13 at $56. By succeeding in freeing itself from it, LTC will be confronted with an important confluence which is the EMA 25 & 32, the MA100. To these levels is added the 50% Fibonacci of the range in which the price moves above the POC. By the way, if you check the H4 chart, you will find that the EMA200 is there as well. We can consider upward targets under two conditions. On the one hand, a resumption of all of this technical confluence on the 57.14/58.27 zone. On the other hand, a bullish retest.
These bullish targets can be at your whim depending on your view of the market and the strength to which LTC might rebound. For example, we can have an objective at 61 dollars (EMA 13 & HVN of the volume profile) and a final objective on the upper limit of the range. However, it will be complicated to have such a rebound without momentum from bitcoin and ethereum.
Litecoin begins to overheat against bitcoin
Against bitcoin, we can see that LTC is in a very weak uptrend. Every small rise is often erased by a red candle. Thus, we see an asset that does not really superform. Moreover, it is under a key level which has already acted as resistance many times. What is possible is a quick take of liquidity with a buying wick before falling again. With respect to our momentum indicatorthe Stoch ROIyou can see that he is currently overheated and should, sooner or later, sign the end of the movement bullish for LTC against Bitcoin
Here we are at the end of this technical analysis of Litecoin. Now you have all the keys in hand to determine the future trend of the asset. It is important to note that this technical configuration is found on other altcoins. The direction they take will of course depend on the strength of Ethereum and Bitcoin, which themselves will evolve in line with the American indices. Be on your guard with impeccable risk management as September approaches!
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