Correction in the market of cryptocurrency continues. A trading idea for LTC/USD

Technical indicators:
  • Market Cap, billion: $9.34
  • % chg. over the week: $9.34
  • 52 wk range: 33.33 - 375.00

Since the beginning of this month, the bearish sentiment has been prevailing on the cryptocurrency market. Leading currencies have reached 50.0%-61.8% of the correction areas after a significant rally last year. The Government of South Korea reported that since January 30, the ban on the use of anonymous bank accounts for trading on digital currency exchanges would enter into force. Due to this, a new wave of recession is observed on the cryptocurrency market. Also, there was information that some EU countries planned to tighten the regulation of digital currencies. These events put pressure on the crypto assets.

The current technical pattern on LTС/USD
  • Support levels: 140.00, 100.00
  • Resistance levels: 210.00, 260.00, 300.00
LTC/USD

Last week the LTС/USD quotes held a "mirror" resistance level of 210.00, which caused a continuation of the downward trend. At the moment, the price is testing the key demand zone of 140.00-160.00. It is not excluded a further correction of Litecoin. Indicator signals point to the power of sellers:
- the price has fixed below 50 MA and 200 MA;
- The MACD histogram is located in the negative zone and continues to decrease.

Trading recommendations

We recommend opening positions in the direction of the current trend. If the price fixes below 160.00, LTС/USD sales should be considered. The immediate goal of profit taking is a round level of 100.00. When following the positions, we recommend using a trailing stop.

by JustForex, 2018.01.23

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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