LTCUSD Technical Analysis for 11/24/2017 — Will Resistance Turned Support Hold?
LTCUSD continues to trend higher but is pulling back from its latest rally. Price is still above the ascending trend line connecting the lows since the middle of November, and this support zone lines up with the 50% Fib.
In fact, the retracement level already seems to have held as a floor and is pushing LTCUSD back up to the swing high at $76.80 or higher. Stochastic is pulling up from oversold levels with a bullish divergence, indicating a buildup in bullish momentum.
RSI, on the other hand, still seems to be pointing down to keep selling momentum in place. In that case, a deeper pullback to the 61.8% Fib might be needed to draw more buyers in.
Nonetheless, the 100 SMA is above the longer-term 200 SMA on this time frame so the path of least resistance is still to the upside. This means that the rally is more likely to resume than to reverse.
The dollar is on shaky footing as traders are adjusting positions to the cautious inflation outlook shared by the Fed and Chairperson Yellen herself. She admitted in a speech earlier this week that an inflation rebound is still uncertain and the minutes of the November FOMC meeting showed that policymakers worried that price levels could run below their objective for longer than expected.
At the same time, the slow progress on tax reform is keeping a lid on dollar gains for the time being. Senators are expected to have more updates after the Thanksgiving holidays, which might yield more volatility for dollar price action against litecoin.
For now, it seems that cryptocurrencies like LTCUSD are staying supported as traders look forward to more developments in the industry. Litecoin is also take advantage of the hesitation to buy up bitcoin now that is testing uncharted territory once more.
Note that litecoin has four times the total coin supply, and block times of 2.5 minutes allowing for quicker transaction confirmations compared to bitcoin.
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