- Litecoin narrows below a descending trendline resistance but downside protected at $40.
- LTC/USD technical picture encourages consolidation between $42 and $44 key levels.
Litecoin price embarks on a sideways trading action in a narrow range between the $42 short term support and $44 resistance. Since the beginning of May LTC/USD has trimmed its value below a key descending trendline resistance. Support at $40 has stood out against the bears especially during the free-fall between May 10 and May 11.
From a technical perspective, LTC/USD is still in the hands of the bulls. This is not to say that buyers are not present. However, their effort seems only enough to keep the price above the immediate support at $42 and the main support at $40.
The MACD, for instance is stuck in the negative region and while its bearish divergence hints that sellers’ dominance could last longer. On the other hand, the RSI is horizontal in the movement at 44. Upward movements stalled short of the average and the sideways action puts emphasis on a possible consolidation movement.
Looking at the moving averages, Litecoin is indeed in the hands of the beards. The gap between the 50 SMA and the 100 SMA in the 4-hour range talks about the increasing bearish grip. Both moving averages will also hinder growth towards the hurdle at $44.