Litecoin has been holding above the $44 USD mark over the past few weeks and appears to be displaying a possible bullish divergence in both the RSI and MACD, this suggests that a bounce at least near-term may be in order.
This theory is also supported by the fact that litecoin has edged out of the descending channel it has been bound to recently (dotted white lines).
That being said the price action, moving averages and most every other indicator is saying that litecoin's trend is decidedly bearish, so whilst these divergences in momentum suggest that the downtrend may be weakening, unless a bounce with strong volume can occur, the outlook is still bearish.
Any bounce would most likely try to find it's way to the $50 USD to mid $50's range, but unless it is accompanied by strong relative volume, it may very well be a bull trap within a broader downtrend, on the way to $35 USD.
This theory is also supported by the fact that litecoin has edged out of the descending channel it has been bound to recently (dotted white lines).
That being said the price action, moving averages and most every other indicator is saying that litecoin's trend is decidedly bearish, so whilst these divergences in momentum suggest that the downtrend may be weakening, unless a bounce with strong volume can occur, the outlook is still bearish.
Any bounce would most likely try to find it's way to the $50 USD to mid $50's range, but unless it is accompanied by strong relative volume, it may very well be a bull trap within a broader downtrend, on the way to $35 USD.
