LTCUSD has been sliding for the past weeks but appears to have found support around $130. Price failed in its last two attempts to break below this support, creating a potential double bottom reversal pattern.
Price has yet to test the neckline around $150 and a break above this resistance could draw more buyers in. If so, LTCUSD could rally by at least $20 or the same height as the chart formation.
However, the 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Price is starting to break above the moving averages as an early bullish signal, though.
RSI is on the move down so price could follow suit while bears have the upper hand. Stochastic is also pointing down to reflect selling pressure, but reaching oversold conditions could draw buyers back in.
Among the altcoins, LTCUSD hasn’t been seeing much positive updates lately, which explains its lagging behind the recent rebound. Then again, Charlie Lee has been more active with his updates again, citing on Twitter:
“Coinbase’s Toshi app is pretty cool, but I always thought it was missing something… Litecoin!”
Toshi responded in a blog post, saying:
“We’ve heard you, and want to let you know that we’re working on adding support for other cryptocurrencies available on Coinbase — Bitcoin, Bitcoin Cash, and Litecoin — to Toshi! We don’t have an official release date yet, but will keep you posted as we get closer to launching support.”
Until that happens, though, litecoin could continue to fall back and be more sensitive to dollar strength compared to its rivals. The FOMC minutes are lined up this week and stronger tightening expectations could lead to more USD support versus litecoin.