LTCUSD medium-term trend: Bearish
Resistance: $160, $155, $150
Support: $130, $135, $140
The overall trend is bearish since the beginning of this week. The situation is likely to be same because the 50-day moving average and the 20-day moving average (MA) tend towards southward. The bearish move is strong with the lower moving average. The bears will push the price further downward. The support levels of $130,$135 or $140 may be breached.
LTCUSD Short-term trend: Bearish
The short term trend will still be bearish because of the discovery of a breakaway gap some days ago. If you scroll backward you will see a break away gap on a 1-hour chart. A break away gap occurs after a trading instrument has traded in a consolidated pattern in a non-trending market.
The gap created has made Litecoin to trade against USD in a downtrend. In 1-hour chart, the period of consolidation indicates a large increase in sentiment in the direction of the gap which will last for some time. In other words the gap will not be filled but the downtrend will continue. The RSI has indicated that price has reached the oversold condition but the price will still rally at the support level.
