LTCUSD is testing what might be the line in the sand for this short-term uptrend. Price is finding support at the bottom of its ascending channel on the 1-hour time frame and could be due for a bounce to the Fib extension levels.
This support zone is still within the area of interest or former resistance area from $175-185. The 100 SMA has also crossed above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the rally is more likely to resume than to reverse.
If so, price could head up to the 38.2% extension at $187 first then to the 50% extension close to $192. From there, stronger upside momentum could take it up to the $195 mark then to the 76.4% extension near $200 and the channel resistance. The full extension is located at $207.636.
Stochastic is already indicating oversold conditions to show that sellers are exhausted and is turning higher to indicate that buyers might take over. RSI is also pulling up from the oversold level to indicate a return in bullish momentum.
However, LTCUSD has also moved below the moving average as an early signal of bearish pressure. A break below the swing low around $174.60 could mean that bearish momentum is picking up.
The US dollar gained strong support against its peers on revived expectations of Fed tightening and a general return in risk aversion. Equities closed lower on weaker Apple iPhone X sales forecasts and on global tightening fears, which could dampen consumer and business spending down the line.
Meanwhile, cryptocurrencies are still on edge due to hacking incidents and the lack of any positive updates. Traders are also wary of government efforts to crackdown on trading activity and to require identity confirmation. There are speculations of a merger between litecoin and Monero, though, but it remains to be seen how it could influence LTCUSD price from here.