LTC looks to dip below $60 as technicals turn bearish – Confluence Detector

  • The parabolic SAR in the 12-hour chart has flipped from bullish to bearish.
  • The whales are looking to sell their holdings.

Litecoin bounced up from $53 on November 4 to $64.25 on November 7. However, the price has since been on a downtrend and looks to be on course for charting a series of lower highs and lows. Let’s look do some technical and on-chain analysis to predict LTC’s future price movement.

Technicals turn bearish

Litecoin dropped from $64.25 on November 7 to $58 on November 10. This fall prompted the parabolic SAR to flip from bullish to bearish. While the latest candlestick has jumped to $59.65, the overall market momentum remains bearish, as indicated by the MACD.

LTC/USD 12-hour chart

The upside is capped off at the $61 resistance barrier, which is a solid level, as seen in the daily confluence detector. The support walls protect the downside at $59.25, $57.85 and the 50-bar SMA ($55.50). A break below these walls will take the price down to the 200-bar SMA ($53.15) and 100-bar SMA ($51.20). These levels look strong enough to absorb any residual selling pressure.

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LTC confluence detector

Santiment’s holders distribution helps us see how the whales have been behaving. The number of tokens holding 1,000 to 10,000 tokens dipped from 3,750  on October 5 to 3,649 at the time of writing. Similarly, the number of addresses holding 10,000 to 100,000 tokens dropped from 408 to 405 in the last 24 hours. 

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LTC holders distribution

Litecoin is presently going through major price action. The support walls protect the downside at $59.25, $57.85 and the 50-bar SMA ($55.50). These walls should be strong enough to absorb a tremendous amount of selling pressure.