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by Charalambos Pissouros

Litecoin Retreats, but Still Above an Uptrend Line

LTC/USD has been in a sliding mode since Thursday, when it hit resistance at 65.40. However, the price structure continues to be of higher peaks and higher troughs above the uptrend line drawn from the low of the 12th of September and thus, we would consider the short-term outlook to be positive for now.

A decisive move back above 62.25 could signal that the current retreat was just a corrective phase and that the bulls are back in the driver’s seat. Such a move may initially open the way for another test near 65.40, the break of which would signal a forthcoming higher high on the 4-hour chart and may set the stage for the return line taken from the high of the 14th of September, or the 69.35 resistance, defined by the peak of the 4th of the month.

Shifting attention to our short-term oscillators, we see that the RSI hit its respective upside support line and turned slightly up. However, the MACD, although within its positive zone, remains below its trigger line, still pointing down. This make us cautious that further retreat may be in the works for now, perhaps for a test near the 59.15 barrier, or the aforementioned uptrend line.

That said, even if this is the case, the short-term outlook would still be somewhat positive. We would like to see a clear break below that trendline before we start examining whether the bulls have lost the battle, at least for now. Such a dip may encourage the sellers to jump in and push the cryptocurrency down for a test near the 55.10 zone. If that area fails to prevent the price from dropping further, then we may experience extensions towards our next support zone of 51.60.

LTCUSD Litecoin 4-hour chart technical analysis

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