Wow, the bulls of Litecoin have really stamped their authority today, after the struggle to establish a clear direction for this week.
In my last LTC/USD technical analysis, I posted the following chart:
I explained that, after the downtrend, I felt,
“We may see some retracement here, since there is a corroboration for our oversold Stochastics, in that both the AC and the AO have turned green.”
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“there may be some ranging for the next few hours.”
And the market did precisely that, eventually retracing to the 50% line, as can be seen below, circled in red (click to expand):
In addition, the 50% is a psychological round number of 11, thus providing further resistance.
Right now, price has just dropped back down to the 38.2% Fibonacci retracement line, and if you look at the Stochastic Oscillator, it just about to turn back down from an overbought position. I strongly suspect the Accelerator Oscillator will turn red by tomorrow as well, by which time we may well see break below 38.2%.