LTCUSD broke out of its falling wedge pattern previously highlighted and is starting a steady uptrend. Price has been trading above an ascending trend line connecting the lows since May 29 and looks due for another test of support.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 50% level lines up with the trend line around 123.20. A larger pullback could find support at the 61.8% Fib which coincides with an area of interest or former resistance around 120-122.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. These moving averages are also within the area of interest to add to its strength as a floor. A break below this, on the other hand, could lead to another selloff.
RSI is still pointing down to signal that bearish pressure is present. Stochastic appears to be on the move down as well, signaling that the correction could go on for a bit longer until the oscillators indicate oversold conditions. If any of the support areas hold, LTCUSD could make its way back up to the swing high at 130 or higher.
Cryptocurrencies staged a pretty solid rebound late last week, with some attributing the rallies to month-end flows. Others say that optimism for a new month has also led to investors reopening their long positions.
Besides, a good number of positive developments were reported in the industry last week, as some countries like Uganda are warming up to bitcoin and blockchain. The launch of mainnet for Tron and EOS has also generated interest while conferences also featured some positive commentary from leaders in the industry.
At the same time, the dollar was on weaker footing due to trade war concerns, so much so that the currency shrugged off stronger than expected NFP data. There are no major catalysts from the US this week so sentiment could push LTCUSD around.
Source: Read Full Article