LTCUSD runs into sellers around 44.72 for the third day in a row
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
LTCUSD finished Saturday at 43.86 losing $0.36 (-0.81%). Trading $0.50 higher after the open, Litecoin 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, LTCUSD lost -10.49% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LTCUSD as at May 23, 2020):
Saturday's trading range has been $1.02 (2.31%), that's far below the last trading month's daily average range of $2.53. 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 LTCUSD.
After moving higher in the previous session, LTC closed lower but above the prior day's open today, forming a bearish Harami Candle.
After trading down to 43.70 earlier during the day, the cryptocurrency bounced off the key technical support level at 43.71 (S1). The failure to close below the support might increase that levels importance as support going forward. The market closed back below the 50-day moving average at 44.06. LTC/USD ran into sellers again today around 44.72 for the third trading day in a row after having found sellers at 44.65 in the previous session and at 44.59 two days ago.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 46.14 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 41.71 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LTC/USD. Out of 231 times, LTCUSD closed higher 49.78% 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 56.28% with an average market move of 11.98%.
With four out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and XRPUSD closing -0.65% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the 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