Litecoin (LTC) saw a lot of bullish momentum over the past few days which resulted in a strong rally to the upside. The 4H chart for LTC/USD shows that the price is now trading around the top of the ascending channel after facing a strong rejection at the top. This means that if LTC/USD fails to break out of this channel soon, we will see a sharp decline below $50 in the days ahead. The price could decline all the way towards the bottom of this ascending channel during the next correction but we expect it to find short term support around the 50 MA and then the 200 MA if that level is breached. Stochastic RSI conditions on the 4H time frame shows that the price does not have ample room for a rally and is very likely to fall back.
Even the RSI on the 4H time frame does not show any promising signs for a rally that could lead to a break above the ascending channel. This would be a good bearish setup to short Litecoin (LTC) all the way towards the bottom of the ascending channel. The trading volume has seen some big spikes over the past few days but this is hardly anything convincing. The interest in most cryptocurrencies at the moment still comes from large interest groups that are miners, professional traders or long term investors. Retail investors who bought near the top are still holding at big losses and have forgotten about the market. Some have taken their losses and left this market while others are looking for the price to crash hard before they get into the game again.