In recent days, some cryptos have held up better than others. The technical setups are broadly the same, although some assets have already led the way by losing key technical hurdles. Discover a full technical analysis of the LTC asset today to take stock of the key asset levels, the bias to consider, and the balance of power with bitcoin.
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LTC manages to keep its POC, but until when?
First, you can use the power of the Downtrend on LTC since December 2021. This is when it lost its EMA confluence and failed to resurface. On numerous occasions, LTC jumped 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. Keep in mind that these last few weeks have been complicated since the LTC has been repeatedly rejected at resistance at $64.50. The sellers are clearly present and do not let go.
On the other hand, LTC fights for maintaining a technical confluence who is here hub area for $53.99 (blue line) and the Point of Control (red line) at $52. A clear loss from these two levels will warn us of a more significant drop to get to the lower technical levels. Initially we can use the $49.38 (Value range 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 struggles with its EMA13 at $56. Breaking free from it, LTC faces a key 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 look at the H4 chart, you will see that the EMA200 is also there. We can consider upward targets under two conditions. On the one hand, a resumption of all this technical confluence on zone 57.14/58.27. On the other hand, a bullish retest.
These bullish targets could be your whim, depending on your view of the market and the strength to which LTC could bounce back. For example, we might have a target of $61 (EMA 13 & HVN of the volume profile) and a final target at the upper end of the range. However, it will be complicated to have such a rebound without momentum from bitcoin and ethereum.
Litecoin is starting to overheat against bitcoin
Against bitcoin, we can see LTC in a very weak uptrend. Any small rise is often erased by a red candle. So we see an asset that doesn’t really form super. In addition, it is below a key level that has already functioned as: resistance many times. What is possible is a quick liquidity withdrawal with a fuse before going down again. With regard to our momentum indicatorthe Stoch ROIyou can see he is currently overheated and will have to sign sooner or later the end of the movement bullish for LTC against Bitcoin
Here we are at the end of this Litecoin technical analysis. Now you hold all the keys to determine the asset’s future trend. It is important to note that this technical configuration can be 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 US indices. Be wary of impeccable risk management as September approaches!
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