Litecoin hasn’t been able to break free from the shackles imposed upon it by the recent bears, although we may see some equilibrium be established within the coming hours.
During yesterday’s technical analysis on Litecoin, I explained by way of the chart below:
“Right now price has pushed down to the 38.2% Fib (at 12.42), which I expect to hold for a few candles at least.”
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Actually, it held for more than a few candles, as 38.2% proved to be a decent support, holding for almost twenty candles (in this case twenty hours as we’re on the H1), marked by the blue arrow, as can be seen below (click to expand):
It’s only in the past couple of hours price has managed to break past 38.2%, although not by much, since just below the 38.2% Fib, we have the price mark of 12, a natural resistance line, since it’s a psychological whole number. Indeed, upon touching 12, price immediately rose back to 38.2%.
With the Stochastics entering oversold territory, I would expect price to continue to hover between 38.2% and 12 for the next three to four hours. The candlestick patterns of the latest three candles signify indecision as well, since all three of them are either spinning tops or dojis. Also, like Bitcoin, there are conflicting technicals on higher timeframes, so it’s hard to envisage either the bulls or bears taking a stranglehold of the market right now.