Litecoin [LTC/USD] Technical Analysis: Coin continues to hemorrhage as prices try to find support

Fibo Quantum

Litecoin, the seventh-largest cryptocurrency, has been on a continuous decline for more than a week. The dip has caused the prices of LTC to reach to a point that was last seen in July 2017. The sell-off has caused all major cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH] to decline as well. At the time of press, Litecoin was trading at $41.47, with a market cap of $2.48 billion.

1-hour

The uptrend ranges from $39.66 to $41.25, which is surprising considering the sell-off underway in the market. The downtrend for LTC in the one-hour chart ranges from $55.69 to $41.50, with a break at $49.78.

There are two new supports holding the prices strong, one at $39.65 and the other at $40.87. The resistance points have come down and are now holding steady at points $43.30, $49.88, $51.15 and $54.09.

The Bollinger Bands are undergoing a squeeze, indicating a reduction in volatility. The prices have fallen below the simple moving average and are moving toward the lower band, which could indicate an oversold market for Litecoin.

The Aroon indicator shows a strong downtrend occurring, which is substantiated by the Aroon down-line that has touched the 100 line. The Aroon up-line has hit the bottom, which is a sign that the uptrend is exhausted.

The Stochastic lines have reached a point below the Stochastic bands, which indicate an oversold status for the asset. The Stochastic line, however, has crossed the signal line and is heading up, indicating a bullish trend.

1-day

There is an uptrend in the long-term one-day time frame. The downtrend, however, extends from $125 to $41.74. The support lines are formed at $37.93 and $48.55. The resistance points have dipped further down due to the recent market crash. The resistance set-ups for Litecoin are at points $63.11, $67.75, $88.99 and $101.11.

The Parabolic SAR indicator shows a clear bearish trend as the markers have spawned above the candles.

The MACD is showing a bearish trend as well, due to the bearish crossover between the MACD line and the signal line.

The Awesome Oscillator is showing red spikes below the zero line, indicating that momentum of the market has decreased.

Conclusion

The one-hour chart shows mixed signals as indicated by Bollinger Stochastic and Aroon indicators. The one-day chart, as indicated by the SAR, MACD and the AO indicators, show a massive bearish presence for Litecoin.