LTCCNY breaks back below 50-day moving average
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
LTCCNY finished Saturday at 315.59 edging lower CN¥5.18 (-1.61%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LTCCNY as at May 23, 2020):
Saturday's trading range has been CN¥5.90 (1.84%), that's far below the last trading month's daily average range of CN¥20.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LTCCNY.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Litecoin closed back below the 50-day moving average at 317.38. When this moving average was crossed below the last time on Thursday, LTCCNY actually gained 8.46% on the following trading day. After having been unable to move above 322.90 in the previous session, LTC/CNY ran into sellers again around the same price level today, missing to move higher than 320.77.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 322.90 where further buy stops could get triggered. Further selling might move prices lower should the market test April's close-by low at 283.58.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for LTC/CNY. Out of 89 times, LTCCNY closed lower 58.43% of the time on the next trading day after the market condition occurred.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more