LTCUSD Technical Analysis for 07/26/2018 – Waiting for Directional Clues
LTCUSD formed lower highs and higher lows to create a symmetrical triangle consolidation pattern on its 1-hour time frame. Price just bounced off the top and might be due for a test of support zone.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, support is more likely to hold than to break or resistance is more likely to break than to hold. These moving averages might also hold as near-term support levels to keep losses at bay.
A breakout in either direction could lead to a move that’s the same height as the triangle pattern, which spans $80 to $94. RSI is pointing up, though, so there may be some bullish pressure left.
On the other hand, stochastic is turning lower after reaching overbought levels, indicating that bears are taking over while sellers take a break. In any case, it might be best to wait for directional clues and a significant break since price is approaching the peak of the pattern, after all.
Litecoin and its peers have had a few solid days in the past weeks, although it appears that bitcoin has hogged most of the recent gains. After all, the focus is now on the SEC decision on the bitcoin ETF, and approval could mean an extension of the rallies for that particular digital asset.
Then again, this might mark another positive regulatory development for the entire industry, so it wouldn’t be surprising if LTCUSD is also able to benefit. For now, traders appear to be holding out for other catalysts that could sustain gains and prevent stronger profit-taking declines.
Meanwhile, the dollar has lost some ground on risk-taking after Trump and Juncker agreed on a deal to hold off further tariffs and resolve previous ones. This has also drawn traders back to stocks and commodities, keeping other assets like cryptocurrencies moving sideways.
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