LTCUSD has formed higher lows and found resistance at the $280 level, creating an ascending triangle formation. Price is currently testing the resistance and could be due for a move back down to support or a breakout.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In that case, LTCUSD could drop by around $50 or the same height as the chart formation. However, the 100 SMA near the triangle support could still hold as a dynamic inflection point.
Stochastic is on middle ground to reflect consolidation but appears to be turning lower. RSI is cruising sideways, barely offering strong directional clues for now.
LTCUSD has been unable to join in bitcoin’s recovery as weaker volumes for this particular cryptocurrency took its toll during the market holidays. Also, the dollar has been supported by the tax bill being signed into law before Christmas, ensuring stronger business activity and overall performance for the US economy in the months ahead.
There are no major catalysts lined up for both litecoin and the US economy for the rest of the year so it’s likely the consolidation could continue in the next few days. Then again, heightened tensions with North Korea on account of their response to the latest set of US sanctions could keep risk-off vibes in place, which would be bullish for litecoin versus the dollar.
“Some people even think I short LTC (litecoin)! So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence.”
He added: “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.”