Litecoin, much like bitcoin drifted lower to end last week. The 1H chart below shows the cryptocurrency retreating from 1.48 and accelerating to 1.30 to start the week. However, during the April 28 session the ltcusd pulled back and tagged 1.41 by the end of the session.
We can see that the bearish momentum in the 1H chart was lost as the RSI pushed above 60. It even tagged 70, which shows initiation of the bullish momentum. Now, if price can stay above 1.35 and the RSI can hold above 40, we might start developing bullish momentum in the near-term and thus keep the market in a non-directional mode this week.
So far, the bulls have be reined in as price retreated from 1.41. Essentially, price is so far respecting the 200-hour SMA and a falling speedline as resistance. If price advances above 1.42, we should consider the market back to a neutral mode in the short-term, with a bullish outlook for the near-term towards 1.48 and possible 1.50. Will the pullback test pass and keep litecoin bearish, or will the market remain in consolidation?
Litecoin (LTCUSD) 4H Chart April 28
(click to enlarge)
Based on the technical picture in the 4H chart, I would favor the bearish outlook. The fact that price is holding below the 200-, 100-, and 50-period SMAs after making a low under last week’s low is an indication that bears are in control of the short-term market. Also note that the 4H RSI is still holding below 60, which means the prevailing bearish momentum is still intact.
If price can return below 1.35, the pressure will remain on the 1.30 low, with downside risk below 1.30 towards the 1.00 parity level, which is the current low on the year. Even if price does push above 1.42 and extend towards 1.50, the outlook would be sideways in the short-term but still bearish in the medium-term. After price clears 1.50 and when we start seeing the 4H RSI tag 70 and hold above 40, then we can start considering a bullish reversal scenario in the medium-term.
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