On LTC/BTC we are seeing price follow a clear downtrend.
Lets take a look at the hourly chart (click to expand).
We can see how since the 16th of February, price hit a high of 0.0255, (circled in yellow) and this was the start of the trend line. Price has then tested the trend line on four separate occassions within the past 36 hours (circled in blue). As we know, the more times a trendline is tested, the strong that support or resistance becomes.
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We need to take a look at further technicals to get an idea as to what may happen next. Note that the Accelerator Oscillator has turned red a couple of hours ago, however the Stochastics are creeping up slowly but surely.
There’s not much here telling me price is going to break the white trendline any time soon. If we do a Fib study, we’ll see how actually price is at the 23.6% retracement level as we speak, and it’s reacted to that level on every hour over the past five hours.
Indeed, I expect price to touch the lower Bollinger band very shortly.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.