After failing to overcome resistance at $100 during price increases three weeks ago, Litecoin continued its decline last week.
The price has dropped to a level of support at $75 which is an important level on the longer-term monthly time frame.
$75 acted as an important resistance point during price increases in September of 2017 and also acted as support while prices were declining in June and July of 2018.
The price has already tested the $75 level several times.
Any drop below the level has quickly found buying pressure to bring the price back above.
Consecutive tests of a level serve to weaken the level with fewer buyers to hold the level on each retest.
The most recent test took place on Sunday where the price briefly dropped below.
Both the daily RSI and MACD also indicate that there are high odds that the price will break below this level.
Both the RSI and MACD have been decreasing indicating momentum is on the side of sellers.
This is often considered an extremely bullish signal for analysts, and if it serves to spur more buying pressure in Bitcoin, there will likely be a knock-on effect in altcoins.
Such an event could result in Litecoin increasing significantly above its support level at $75.
A Doji candle formed on the Dash weekly chart for last week’s price action.
So far, a Doji candle is also forming this week for Dash representing high levels of uncertainty from traders regarding the future price prospects of Dash.
The price rises of three weeks ago failed to overcome a resistance level at $140.
The price has since dropped to trade to a range between $118 and $124.
Dash is similarly exposed to the bullish patterns forming in Bitcoin today.
With high levels of correlation between Bitcoin USD returns and top altcoins USD returns, price increases in Bitcoin will also likely spur price increases in Dash.
- Both Litecoin and Dash are exposed to the golden cross forming in Bitcoin, and if more buyers drive the price of Bitcoin up, it will likely have a similar impact in top altcoins.
- Litecon has been recording bearish price action over the past two weeks, dropping to test an important support level at $75 repeatedly.
- There has been more consolidation in Dash with a Doji candle forming on the weekly chart for last week’s trading.
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