Litecoin [LTC] Technical Analysis: Bears reign supreme as bulls struggle to contain downtrend
The bear looms large over the cryptocurrency horizon as markets struggle in light of the January 10 slump. Litecoin [LTC] suffered the same fate as other cryptocurrencies and has seen its price against the US Dollar fall by around 25% this month alone.
At the time of press, Litecoin [LTC] remains the eighth-largest cryptocurrency in terms of market capitalization, with a market cap of over $1.86 billion. Valued at $31.06, it also registered a 24-hour trading volume of $516 million with ZB.com contributing 7.96% of it through the trading pair LTC/USDT. LTC also has a negative growth rate of 0.24% over the past 24 hours.
The one-hour chart demonstrated a marginal downtrend that extended from $31.353 to $31.179. This was on the back on a similarly marginal uptrend that existed from $31.088 to $31.345. The point of resistance was met at $31.367 while the closest support point holds strong at $30.984.
The Bollinger Bands are neither expanding or contracting, which suggests that volatility in the market has retained its stability and that any price movement has largely been sideways.
The Klinger Oscillator has the signal line above the reading line, indicating a bearish trend to the market.
The MACD graph has the signal line just creeping below the MACD line, indicating that despite bullish defiance, the bears have control of the market.
The one-day chart exhibits a significant downtrend from $39.329 – $32.863, a reflection of the slump that began on 10 January. It followed an uptrend that extended to a high of $40.079 on 8 January. The most recent point of resistance was met at 40.229 while bullish defiance has helped the support point at $30.447 hold firm.
The Parabolic SAR has all its markers above the candlesticks which suggests a bearish trend to the market.
The Awesome Oscillator is in the red, also indicating that the market is indeed bearish.
Finally, the Aroon Indicator has the Aroon Down line well above the Aroon Up line and closer to 100 indicating that the bearish trend is holding strong and has taken control of the market.
It can be concluded that a strong bearish trend is characteristic of the LTC market in the near future. Despite some bullish resistance that has stabilized its value somewhat, all indicators, whether in the short-term or long-term suggest that the bears have firm control of the LTC market.
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