Shifting averages have been doing a very good job, performing as help and resistance for cryptocurrencies, turning into help when the value is bullish and vice versa. We will see from the Litecoin weekly chart that in most of final 12 months, transferring averages had been performing as resistance, significantly the 50 SMA (yellow) and the 100 SMA (inexperienced).
The the value turned bullish, pushing above the transferring averages and the 20 SMA (grey) changed into help. The development was actually robust, so the opposite transferring averages weren’t in a position to meet up with the value, so the 20 SMA stored pushing LTC/USD increased.
Though, the crash got here in Could and the 20 SMA was damaged with out a lot resistance, which we talked about in our 2021 Litecoin forecast. The 50 SMA (yellow) provided help for a few month, however it was damaged this week, with the selloff in cryptos resuming once more.
However, the final two transferring averages held as help for Litecoin and the value has pulled again up now.The 100 SMA (inexperienced) and the 200 SMA (purple) held through the decline this week and if Litecoin climbs as much as $140 by the tip of the week, the chart setup would look fairly bullish. However, we have now to attend and see.