- Technical indicators suggest the end of the bullish momentum as reversal takes over.
- Litecoin must defend newly established $79.00 support to avoid trimming gains heading to $75.00.
Litecoin reacted to Bitcoin’s breakout on Friday extending the gains in an engulfing candlestick that spiked above $80.00. Prior to the ballistic rise, the price had been consolidating below $76.00 while the downside strongly protected above $72.00.
The gains on Friday hit highs around $81.30 before Litecoin retreated to the newly established support at $79. There has been a break below a short-term trendline that had formed in the wake of the formidable gains today. If the ongoing declines clear $79 support LTC/USD could breakdown towards the 50 SMA and the 100 SMA above $75.00.
Technical analysis shows that the bullish momentum has hit a deadened and a reversal is possible. The RSI has been rejected from the overbought while the MACD is heading south towards the negative zone. As mentioned defending $79.00 is key for the continuation of the bullish trend.
LTC/USD 15′ chart
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