LitecoinLong
LTC/USD: Buyers in Control Following Recent YTD Pinnacle?
Daily Timeframe -
Technically, LTC/USD has gradually trended higher since bottoming in mid-June at $40.32 (2022). At the beginning of last week, we also saw the unit refresh YTD highs at $114.98, though we did spend the remainder of the week giving up ground.
Friday ended with testing support from $95.13, which, as you can see, attracted moderate dip buying. Failure to defend this level opens the possibility of testing demand at $84.65-$87.40, an area that currently shares chart space with the 50-day and 200-day simple moving averages at $89.38 and $87.83, respectively. We also observed the 50-day SMA rebound from the 200-day SMA in late June (many were calling for the possibility of a Death Cross at this point [long-term bearish trend signal]). However, validating this signal would be difficult, given that the pair has been somewhat directionless since mid-February, formed by way of a symmetrical triangle (sometimes referred to as a coil or isosceles triangle), which, incidentally, welcomed a breakout to the upside at the end of June. But, because of last week’s correction, we are now back within the space of the symmetrical triangle. It is important to consider that the breakout higher may have simply been a whipsaw/fakeout (common with symmetrical triangles).
Ultimately, given the uptrend in play, and because of the recent YTD high and breakout above a reasonably long-term symmetrical triangle, as well as support offering a floor from $95.13, buyers could emerge from current price this week. The caveat to this, of course, is that the demand seen at $84.65-$87.40 offers more of a technically confluent area, with both the 50-day and 200-day SMAs nearby (possible [dynamic] support) and, thus, could haul price action lower towards this region before buyers step in.
Technically, LTC/USD has gradually trended higher since bottoming in mid-June at $40.32 (2022). At the beginning of last week, we also saw the unit refresh YTD highs at $114.98, though we did spend the remainder of the week giving up ground.
Friday ended with testing support from $95.13, which, as you can see, attracted moderate dip buying. Failure to defend this level opens the possibility of testing demand at $84.65-$87.40, an area that currently shares chart space with the 50-day and 200-day simple moving averages at $89.38 and $87.83, respectively. We also observed the 50-day SMA rebound from the 200-day SMA in late June (many were calling for the possibility of a Death Cross at this point [long-term bearish trend signal]). However, validating this signal would be difficult, given that the pair has been somewhat directionless since mid-February, formed by way of a symmetrical triangle (sometimes referred to as a coil or isosceles triangle), which, incidentally, welcomed a breakout to the upside at the end of June. But, because of last week’s correction, we are now back within the space of the symmetrical triangle. It is important to consider that the breakout higher may have simply been a whipsaw/fakeout (common with symmetrical triangles).
Ultimately, given the uptrend in play, and because of the recent YTD high and breakout above a reasonably long-term symmetrical triangle, as well as support offering a floor from $95.13, buyers could emerge from current price this week. The caveat to this, of course, is that the demand seen at $84.65-$87.40 offers more of a technically confluent area, with both the 50-day and 200-day SMAs nearby (possible [dynamic] support) and, thus, could haul price action lower towards this region before buyers step in.
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