Litecoin bulls seem to be facing a strong supply pressure near $1.80. Even though the price has rebounded from a six-week low of $1.60 to the current $1.79, I still believe that this is a seller’s market, and that rallies should be used to exit long positions and initiate fresh shorting.
As can be seen, I have used a 240-minute LTC/USD price chart and applied multiple technical indicators as well as marked key technical resistance levels. Interestingly, they all point to one thing: Exit on Rise.
Technical Resistances: Litecoin is now struggling near Resistance Line 1 (marked above). The level of $1.80 was an extremely strong support level which laid the foundation for further gains in the cryptocurrency. However, with that breached decisively, I do not expect the price to cross this major hurdle very soon.
If Litecoin leapfrogs, the zone of $1.88-1.90 (Resistance Line 2) will act as another roadblock. This resistance is further fortified by the 20-4h SMA of $1.88.
Relative Strength Index: As expected, the RSI has advanced from yesterday’s 17.4040 to current 37.1514. But, it must be noted that RSI faces an obstacle near 43 (marked in the chart). Until bulls cross this obstacle, long positions are better avoided.
Momentum: Along the lines of RSI, the Momentum indicator has also risen from -0.2955 to -0.1105. But it being still negative implies that the altcoin is in muddy waters. A drive into the positive territory would be the first indication that things are turning optimistic for Litecoin.
Moving Average Convergence Divergence: The MACD and the Signal Line continue to be mired deep in red, with values of -0.0643 and -0.0631, respectively.
The case for an upmove is still unclear while there are several indicators signaling a bearish outlook. Hence, it would be advised that contrarian trades be avoided and only short positions are considered.