The crypto market in general is consolidating recently after being in a bloodbath at the end of 2018. After spending the first half of the year consolidating above the $100 mark, LTC/USD slid in the second half of the year until finding support around $22.20 in December.
It is now trading around $40 (1/8/2019)
LTC/USD Daily Chart
Inverted Head and Shoulders:
On the daily chart, we can see that price action has completed an inverted head and shoulder pattern and broken above the neckline that was around $37.
This price bottom suggests some short-term upside.
However, given the overall bearish environment, we should limit this upside to the $50 area, or at most $55, where the 200-day simple moving average (SMA) resides at the moment.
Also, if we see the RSI above 70, and it has a bearish divergence with the RSI (lower RSI high corresponding to higher price high), then we can anticipate the rally to stall and can expect LTC/USD to return to the bearish mode.
Support @ $30:
To the downside, there is short-term support around $30.
A hold above $30 would suggest more upside in the short-term.
Let’s say price pulls back from the current level around $40, It price then stays above $30, and returns back towards $40, we can have more confidence that price can drive up to $50.
A break below $30 would probably be part of a bearish continuation swing that is likely to retest the $22.20 low and possible tag the $20 handle.