LTCUSD Technical Analysis for 03/19/2018 – Downtrend Still Holding
LTCUSD is still on a downtrend, moving inside a descending channel on its 4-hour time frame. Price is just bouncing off support and could be due for a move back to resistance. Applying the Fib retracement tool shows the potential upside barriers.
The 61.8% retracement level is closest to the channel resistance and could be enough to keep gains in check. The 50% level lines up better with an area of interest or former support turned resistance.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to continue than to reverse. Stochastic is on the move up, though, so there may be some buying pressure left. RSI is also heading up to show that the correction is still in play.
Cryptocurrencies seem to be on edge while waiting for the G20 Summit to happen, as world leaders are expected to talk about their views on the industry. Most appear to be wary of the use of altcoins for potential criminal activity and the security issues involved, but the willingness to let developments unfold could still prove positive for the industry.
Meanwhile, the dollar has the FOMC decision to contend with so LTCUSD could be subject to additional volatility midweek. An interest rate hike is widely expected, but having this accompanied by cautious remarks could still be dollar bearish.
By the looks of it, litecoin and its peers are taking advantage of risk appetite and are usually sold off when risk aversion returns. Note that Twitter is also said to be gearing up for a ban on cryptocurrency ads soon, following the move from Facebook back in January and Google in June. This could limit investor activity and volumes, likely dampening demand and price gains as well.
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