Bearish Divergences Form for Litecoin and Dash [Price Analysis]


Litecoin Price Analysis

Litecoin USD Weekly Chart – Source:

Last week was a volatile week for the cryptocurrency market.

Litecoin surpassed the point of its last weekly high but retraced back close to the level of the former high at $91.82 as the week closed.

Litecoin USD Daily Chart – Source:

The price followed up this week with a drop below the $91.82 level yesterday.

The price recovered to close above yesterday but is following up today with a drop below.

A bearish divergence is also forming on the weekly chart indicating that more downward price action may be in store.

Litecoin BTC Monthly Chart – Source:

Prospects for Litecoin holding its value against Bitcoin are looking extremely dim.

The monthly candle is forming with little to no lower wick indicating strong price action in the downward direction.

Litecoin BTC Daily Chart – Source:

Litecoin has been losing value against BTC since early April.

The price action has been in a downtrend but managed to record appreciation against BTC on Tuesday and Wednesday of last week.

Most major altcoins recorded increases against BTC on Tuesday and Wednesday last week, but Litecoin found some selling pressure at the downward trendline forming.

Price action experienced selling pressure at this point on Thursday and Friday last week and has since started declining.

Dash Price Analysis

Dash USD Weekly Chart – Source:

Dash recorded an extremely bullish week of price action last week surpassing the high formed in October.

The weekly candle formed as a Marubozu candle, a bullish candle pattern indicating strong movement in one direction.

Dash USD Daily Chart – Source:

The price has since retraced to the level of the October high at $164 where buying pressure has come into play.

Although the price has dropped below this level both today and yesterday, buyers pushed the price back above on both days.

A bearish divergence is also forming on the daily chart between the price and the RSI.

However, the bearish divergence is likely to have little impact given the bullish price action being recorded on the longer-term weekly timeframe.

Dash BTC Daily Chart – Source:

Given its outperformance in terms of USD price, Dash has been appreciating in terms of BTC price for the majority of last week.

The price increased to find some resistance at the 0.02167 BTC level, a former high.

It has since retraced to find some support at 0.020434 level.

Key takeaways:

  • Both Dash and Litecoin record increases in USD price last week with Dash forming a bullish Marubozu candle on the weekly chart.
  • The outperformance of Dash has resulted in the price appreciating at BTC price.
  • Litecoin only recorded increases against BTC on Tuesday and Wednesday last week and stays in a downtrend.

Latest Litecoin, Dash & Bitcoin News:

DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell, or hold and should not be taken as an endorsement or recommendation of a particular asset.
Featured Images are from Shutterstock.

Blokt is a leading independent cryptocurrency news outlet that maintains the highest possible professional and ethical journalistic standards.

Source link