LTCUSD Technical Analysis for 06/28/2018 – Another Triangle Pattern!
LTCUSD is consolidating in another symmetrical triangle pattern as it formed higher lows and lower highs on the 1-hour chart. Price is currently testing the resistance and may be due for another move to support.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The 100 SMA is holding as dynamic resistance near the top of the triangle as well.
The gap between the moving averages is widening to reflect stronger selling pressure. If the earlier consolidation pattern is any indication, LTCUSD is likely to break below this triangle as well.
RSI is heading lower, also confirming that bearish momentum is present. Stochastic is just starting to make its way out of the overbought region to reflect a return in bearish pressure as well.
The chart formation spans around $20 so the resulting breakdown could be of the same size. Bearish divergences can also be seen as RSI and stochastic made higher highs while LTCUSD had lower highs.
Litecoin appears to be trailing behind its peers in taking advantage of cryptocurrency rallies, but it could still be poised for some upside if any updates specific to this digital asset turn out positive.
For now, though, the dollar remains in demand as safe-haven flows persist on trade troubles. Note that the Trump administration may be pursuing a softer stance on Chinese investments into US tech companies, but this does not take away the fact that it is still at odds with the likes of Canada and the EU.
Then again, it’s worth noting that geopolitical risks like these could prop up cryptocurrencies as an alternative investment vehicle versus traditional markets. Stocks and commodities have been more sensitive to trade-related headlines, so higher returns might be sought elsewhere.
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