LTC/USD tumbled on Thursday, after hitting resistance at 204.50. The slide continued on Friday as well, but the price failed to reach Tuesday’s low of 156.60, hit support slightly higher and rebounded somewhat. That said, bearing in mind that the crypto has now started forming lower highs, we would consider the short-term outlook to be cautiously negative.
In order to get more confident on further declines, we would like to see a clear dip below 156.60. Such a move would confirm a forthcoming lower low and may pave the way towards the low of February 4th, at 140.70. If that barrier is not able to halt the slide, then a break lower may see scope for extensions towards the 125.65 territory, marked by the low of February 1st.
Taking a look at our short-term oscillators, we see that the RSI, although below 50, turned up, while the MACD, even though below both its zero and trigger lines, shows signs that it could turn up as well. Both indicators detect slowing downside speed and suggest that Litecoin may trade a bit higher before the bears decide to shoot again, perhaps to test the downside resistance line drawn from the high of February 19th.
The outlook may change to a positive one if we see a strong rebound above 189.00, a resistance marked by Wednesday’s high. This may also take the crypto above the aforementioned downside line and may allow the bulls to aim for yesterday’s peak, at 204.50. If they manage to overcome that hurdle as well, then we could see advances towards the 223.50 area, marked by the inside swing low of February 21st.
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