Litecoin (LTC) welcomed May with downside tendencies, forming a range in the $60 – $74 value area during mid-May sessions. While writing this content, the alternative token seemed ready for further drop following a session close below the $60 range low.
While publishing this blog, USDT had its dominance at 6% and has hovered within 5.84% – 6.6% within the previous three weeks. An advance in this metric would signal money fled from cryptocurrency tokens into UST, confirming selling momentum in the marketplace.
12Hr Timeframe
LTC has maintained downtrends since November late sessions, and April- May had prices failing to protect $100 and $80, translating to a bearish regime. The asset has flipped these levels from demand areas to supply, whereas Litecoin stretched beneath the $60 zone.
The previous three weeks saw prices forming a range at $60 – $74, with $67 as the mid-point. Moreover, the midpoint has acted as resistance and support for the alternative token. The past trading day had LTC dropping below the range lows, losing the $60.4 zone. Meanwhile, the FIB extension places the southward targets at $57, $51, and $46.
4Hr Timeframe
According to the 4hr chart shows $50 mark stayed sturdy as a high timeframe foothold. The support can support a $60 retest in the coming day or two, and enthusiasts can consider a shorting position. Aggressive investors can set a stop-loss beyond $62. However, a lenient stop-loss could be at $64 as $63.5 has served as resistance within the past few days. Meanwhile, $57, $51, and $50 might represent take-profit levels.
The 4hr Relative Strength Index stayed beneath the 50-neutral and declined below 35 over the past couple of hours. That confirmed massive bearishness behind Litecoin. Also, the Awesome Oscillator printed red bars on the histogram, indicating downward pressure.
The on-balance volume displayed a horizontal zone which it protected throughout May. Nevertheless, the past 48 hours of trading had OBV gradually sinking beneath the mentioned level.
Final Thought
The downside Relative Strength Index and falling on-balance volume suggested intense selling momentum behind LTC. Price actions in the higher chart showed Litecoin breaking range lows, encouraging shorting of the token. Enthusiasts can take an entry at $60, whereas $57, $51, & $50 represent take-profits. Moreover, traders can use $63.9 as a traditional stop loss.
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