So, from jump on the $LTC USD 4H chart, it looks like the price of LTC broke downward instead of up. Obviously, this is due to the steep downturn within the market after BTC shit the bed on 3–6–2018.
Currently, on that same chart, the next real support point would be at $156. Since $LTC just sort of shot up from there before, there’s no real support points between where it is now and $156, making that a likely target to rush to even though that does represent an approximate drop of 11% from where it is now, essentially crushing all of the gains that it made over the last month.
Before closing the book on $LTC like that though — one must evaluate the LTC/BTC charts as well. As you can see, there was a clear double top formation that took place, followed by the necessary drop that the formation dictates, then it bottomed out at 0.0180 BTC/LTC mark, ending the impact of the formation.
The formation is now out of play at this point and is not an impact on the price.
As it stands, LTC is currently at 0.018850 BTC/LTC, which makes sense because it was overbought at the higher BTC level that it reached off of the double-top formation. See below:
I tried to mark out the areas on the STOCH RSI indicator where both of the peaks of the double tops for the LTC/BTC (4H) pairing were.
MACD speaks for itself. Pretty substantial that it crossed at 0.0180 BTC/LTC (bottoming out point). Divergence between MACD (blue line) and price for a while before eventually the divergence only occurred on the Histogram (histogram got larger).
In Laymen’s terms the MACD was signaling while the price (in $BTC) was still declining, which is notable because that doesn’t usually happen.
Above is a picture of the EMA 50 (light pink) and EMA 200 (darker blue) crossing (EMA200>EMA50) to form a death cross. While this is notable on the 4H TF for the LTC/BTC pairing, the lack of divergence between the two lines means that the pair could easily cross again. This is something to definitely look out for.
At the time of writing, the price is currently diving below the EMA50 as well, which would make it a resistance point.
The price still has yet to break the EMA-200 resistance point that has been established either.
More general rules that are important to remember:
There’s a good chance that Litecoin continues to depreciate in USD value until it hits that lower price mark and it may even start to backslide against $BTC as well in the coming days as evidenced by the death cross on the LTC/BTC 4H chart.
I still stand by my former recommendation that Litecoin may find itself at the $240 price mark by March 15th. Remember, a LOT can happen in crypto in 7 days.