LTCUSD is trending lower on its 1-hour time frame, moving inside a descending channel pattern. Price is currently testing the resistance near $240 and the 50% Fib.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This suggests that the selloff is more likely to resume than to reverse. Price has broken above the short-term moving average, though, indicating the presence of bullish momentum. Still, the 200 SMA lines up with the 61.8% Fib near $250 and could serve as an extra layer of resistance.
Stochastic is on the move up to suggest that buyers are on top of their game. RSI also has room to climb so LTCUSD might follow suit. However, there is also an area of interest or former support turned resistance near the 61.8% Fib, so this could keep gains in check if the oscillators reach overbought levels and turn back down soon.
In that case, LTCUSD could make its way back down to the channel support or at least until the swing low at $200. A break past the 61.8% Fib, on the other hand, could mark the start of an uptrend.
LTCUSD has lost plenty of ground when its founder liquidated all of his holdings and admitted that litecoin is dependent on him. Towards the end of last month, founder Charlie Lee announced that he has sold off all of his holdings in the cryptocurrency he created because he had been accused of price manipulation.
“Some people even think I short LTC (litecoin)!” he said. “So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence. I have always refrained from buying/selling LTC before or after my major tweets, but this is something only I know. And there will always be a doubt on whether any of my actions were to further my own personal wealth above the success of litecoin and cryptocurrency in general.”