LTCUSD Technical Analysis for 05/15/2018 – Break and Retest Underway?
LTCUSD recently broke below an uptrend line to signal that a downtrend is about to take place. Price found support at 132.00 and could be due for a retest of the broken support before resuming the drop.
Applying the Fibonacci retracement tool on the breakout move shows that the 61.8% level lines up with the broken trend line, which might now hold as resistance. Price is currently testing the 38.2% retracement level at 152.56, which lines up with the moving averages.
Speaking of moving averages, the 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. However, the gap is narrowing to show that a downward crossover could happen soon and the moving averages could keep holding as dynamic resistance.
RSI is on the move up but is nearing the overbought zone to signal exhaustion among buyers. Stochastic is already indicating overbought conditions and looks ready to turn south to show that sellers have the upper hand.
Litecoin will be added to the Gemini cryptocurrency exchange of the Winklevoss twins, so it could undergo a fresh round of volumes and activity. Positive expectations could prop price higher, even past the Fibs and back above the broken trend line.
The exact date for when Litecoin will be added to Gemini has yet to be announced, but details on other altcoins added like Zcash were already released so traders are on the lookout. This has been received positively by founder Charlie Lee.
Gemini is a regulated exchange that serves its existing customers in 48 U.S. states, Washington, D.C., Puerto Rico, Canada, Hong Kong, Singapore, South Korea and the U.K.
As for the dollar, the upcoming US retail sales release could be the main catalyst for price action this week, although another round of geopolitical risks might still favor the safe-haven currency.
Source: Read Full Article