LTCUSD Technical Analysis for 04/10/2018 – Prepare for a Breakout!
LTCUSD is still stuck inside its long-term descending triangle pattern and is hovering close to support. A break lower could lead to a drop of the same height as the chart pattern.
However, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse.
This also suggests that price could still bounce up to the triangle resistance or even break higher. In that case, LTCUSD could climb by the same height as the chart formation. Then again, the gap between the moving averages is narrowing to signal weakening bullish pressure.
Stochastic is pulling up from oversold territory, though, so an increase in bullish momentum could be due. Similarly, RSI has been in the oversold region for quite some time and looks ready to pull up as well.
Cryptocurrency prices are seen to be weighed down by the looming tax deadline recently as profit-taking is happening while investors compute their dues on their holdings. However, the overall mood in the industry has mostly been positive due to reports that large hedge funds are making preparations to invest more money in altcoins.
Among these is Soros Fund Management, founded by none other than George Soros who previously said that bitcoin is in a bubble. This could represent a shift in his take on cryptocurrencies, along with other major players who have also expressed doubts.
Keep in mind, though, that India and Pakistan have taken action to ban cryptocurrencies so there could still be some caution among investors from here. Dollar demand is supported on safe-haven prospects and the idea of easing trade tensions between the US and China. If this worsens, however, the US currency could give up ground across the board and the likes of litecoin could take advantage.
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