Litecoin [LTC] Technical Analysis: Bearish momentum stalls as bulls resist downtrend

Like most cryptocurrencies right now, Litecoin [LTC] continues to bleed. From the heights of the previous year, the value of LTC has fallen considerably against the US Dollar to just $31.70 presently and the market has retained a decidedly bearish trend. The market has also gone down by 0.22% over the past 24 hours.

At the time of press, Litecoin [LTC] remained in the eight position on the list of the world’s largest cryptocurrencies with a market capitalization of $1.90 billion. Over the last 24 hours, it had a volume worth $595.9 million, with ZB.com contributing the most at 8.13% via the trading pair LTC/USDT.

1 – hour

Source: TradingView

The one-hour chart suggests that the bearish downtrend that extended from $32.216 to $31.661 has stalled somewhat. However, the uptrend from $31.684 to $31.914 is yet too brief to mark a momentum shift in the general bearish trend of the trade. Both the support and resistance points at $31.579 and $32.790 have held on firmly against both bearish and bullish pressures

The Parabolic SAR indicates that all markers are well above the candlesticks, suggesting that the market remains overwhelmingly bearish in nature.

The Awesome Oscillator suggests that the bulls have mounted some resistance against bearish control and that the market may see a reversal of trends soon.

The Aroon indicator has the Aroon Up line way over the Aroon Down line and is thus, closer to the level of 100. This backs the finding of the AO and indicates that bullish resistance is currently holding the fort in the market.

1 – day

Litecoin [LTC] Technical Analysis: Bearish momentum stalls as bulls resist downtrend

Source: TradingView

On the other hand, the long-term projection of the market suggests that the outlook and momentum are all in the bear’s favor. The market has seen a recent uptrend from $24.082 to $30.993. However, it is yet to overhaul the massive downtrend that extended from $89.263 to $40.192. Both resistance and support points are holding steady at $40.193 and $23.414 respectively.

The Bollinger Bands are neither expanding nor contracting and are holding steady, suggesting that volatility is stable and that any movement here will be merely sideways.

The Chaikin Money Flow has the market trading below the point of zero, suggesting that money is still flowing out of the market, indicating a bearish outlook for the market in the long-term.

The Relative Strength Index suggests that the market has neither been oversold or overbought, indicating that both buying and selling pressures have evened themselves out.

Conclusion

The indicators for the one-hour chart including the SAR, Aroon, and AO have produced contrary results but it would seem that the bulls are slowly forcing the bears back. Whether the bulls will sustain this momentum is difficult to predict. On the other hand, the long-term, one-day chart, using indicators like Bollinger Bands, CMF and RSI suggest that despite brief bullish resistance, the bears still have the LTC market by its throat.

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