Litecoin is one the cryptocurrencies that plummeted from its all time highs of $370. Due to a major bearish pressure in the crypto space, almost all cryptocurrencies followed suit of diving down.

- Market structure: Market structre of LTC has been bearish after it broke the $180 level previously. Now, resting at the support level, this support has been weakening since there have been 3 tests of this support earlier. The more the tests, the more the level is prone to break. If this level breaks, next target is $70. Our shorts will be from the resistance as shown in the charts. If this level holds, which it currently is holding, then we will see a push up towards $170.

- Trendline: LTC has broken the 7-month long ascending trendline, which caused the breakout sell. The validation was signified when the candles opened and closed below the trendline. Right now, what we have is a descending trendline, which has been broken earlier and validated by candles opening and closing above it. Until the resistance is broken, we can’t really say that the breakout buy has been confirmed.

- Retracement: The Fibonacci 61.8-75% levels completely overlap with the resistance level, which indicates a high probability sell at the level. We will wait for the market to reach here before taking any position.

-EMA's: Both EMA’s are currently above the prices, which represent a bearish structure. A death cross has also taken place. This being done, the trend seems bearish from here onwards. We will see at the resistance as to what happens for a short.

- RSI/CCI: Both oscillators are at a buying region right now. This means that market may tap the resistance before it starts its down move, if it does. Till then, we will wait for the over bought situation.

In cryptocurrency, we usually invest and only look for a long position to hold for a longer time period. Till we break the resistance level, we don’t really have a trade for buys. At this level, we will see how price reacts to take further decision of a decent trade setup.

Litecoin range bound

Jul 31 2021

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