Token : $LTC
Signal : SHORT 🔻
Litecoin (LTC) has shown signs of a significant technical shift. Recently, the currency broke through the floor of a medium to long-term rising trend channel. Typically, when an asset breaches the lower boundary of a rising channel, it signals either a slower pace of growth or the beginning of a sideways, consolidative phase. For Litecoin, this break suggests that its previous bullish momentum is weakening, and traders should prepare for a possible trend change.
In the short term, however, Litecoin provided a brief spark of optimism by breaking through a resistance level. This breakout hinted at a positive signal for the short-term trading range. Yet, a closer look at the weekly candle tells a different story. The wick formation on the weekly chart suggests that buyers were rejected at higher levels, leaving bears in a prime position to dominate in the coming days.
Support for Litecoin is currently established around the $67.00 mark, providing a potential floor if the price continues to decline. Meanwhile, resistance stands strong at $98.00, a level that now seems increasingly difficult to retest given the shift in market sentiment.
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With six trading days remaining in the week and bearish pressure mounting, a short position could be a strategic move for traders seeking to capitalize on the expected downward momentum. If bears maintain control, Litecoin could very well slide towards its support zone, offering opportunities for those positioned accordingly.
Trade setup :
Entry - 78
Target - 64
Stop loss - 84
Trade type - Mid term.
In summary, while Litecoin has shown resilience in the past, current technical indicators point toward a bearish tilt. Traders should watch key support and resistance levels closely and adjust their strategies to align with the evolving market dynamics.
