FxNews—The Relative Strength Index (RSI) divergence has led to a correction phase in Litecoin and a range trading between $57 and $70. These price points serve as the key levels for Litecoin bulls and bears alike.
Stochastic Signals Litecoin May See Less Selling Pressure
The Stochastic oscillator, a momentum indicator, is currently in the oversold area, suggesting that selling pressure may diminish. Concurrently, the RSI indicator is bearish, indicating a potential downtrend. Observing the length of the daily candles, it’s evident that the market is experiencing a lack of liquidity. Furthermore, Litecoin is trading below the Ichimoku cloud, another sign of the bearish bias on the LTCUSD.
In this analysis, we also examine the 4-hour (4H) chart. The Stochastic oscillator is nearing level 70, indicating potential overbought conditions. We observe a bearish long wick and an inverted hammer in the 4H chart, both of which are bearish candlestick patterns.
With Litecoin trading near the mid-line of the bearish channel, our LTCUSD analysis suggests that we can expect the pair to decline. A potential target is the $57 support level. Our candlestick study shows that the bulls appear weak in the LTCUSD market.