- The immediate upside is limited by a confluence formed by the converging EMA100 and SMA100.
- Litecoin is still oversold despite the recovery from this week’s lows.
- Technicals show the end of the bear momentum and the beginning bullish traction.
Litecoin is showing signs of exhaustion from the downtrend experienced from the beginning of July. Recovery to June highs around $146 has been impossible with the path of least resistance having an affinity to the south.
There has been an attempt for recovery from the lows posted at $77.63, however, the buyers have not been able to sustain gains above $100. Besides, the daily chart shows LTC/USD having corrected to the current market value of $97.76. The immediate upside is limited by a confluence formed by the converging 100 Exponential Moving Average (EMA) and the 100 Simple Moving Average (SMA) daily.
In a technical perspective, Litecoin is still oversold despite the recovery from this week’s lows. The slow stochastic oscillator had dived to 6.81 and is now pointing upwards at 40. A correction above the average (50) will further increase the buyers’ confidence in the recovery. The signal from the 12-Day Moving Average Convergence Divergence (MACD) shows the end of the bear momentum and the beginning bullish traction. The reducing negative divergence is a key indicator for a bounce.
In terms of support, $90.00 will try to cushion the fall in the event of a reversal. The next support at $80.00 is very key while the recent low at $77.63 is a major support. On the upside, correction above $100,000 and the EMA100 and SMA 100 will open the door to gains heading towards $120 hurdle.