LTCEUR breaks back below 50-day moving average
Litecoin/Euro Index (LTCEUR) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
LTCEUR finished Saturday at 40.27 losing €0.27 (-0.67%) on low volume. Trading €0.46 higher after the open, LTC/EUR was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 9th, LTCEUR lost -10.27% on the following trading day. 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 (LTCEUR as at May 23, 2020):
Saturday's trading range has been €0.84 (2.07%), that's far below the last trading month's daily average range of €2.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LTCEUR.
After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle.
LTC closed back below the 50-day moving average at 40.56. The cryptocurrency ran into sellers again today around 41.00 for the third trading day in a row after having found sellers at 40.99 in the prior session and at 40.70 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 42.20 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 38.07 where further sell stops could get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for LTC/EUR. Out of 85 times, LTCEUR closed higher 58.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.94% with an average market move of 5.20%.
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