Dogecoin – Litecoin, Dogecoin, Compound price Analysis: 21 March
Litecoin was on the verge of moving south from $193.7-support on the back of bearish on-chain metrics. DOGE moved closer to $0.056 support, while COMP broke downwards from a descending triangle.
Successive red candlesticks on Litecoin’s 4-hour chart underlined a strong bearish presence in the market. A bit of divergence was also spotted on the OBV after the index formed lower highs. If the price breaks below the current support, LTC could see extended losses towards the $182-level, where some resistance can be expected by the buyers. A move in the oversold territory by the RSI could trigger a breakdown from the current channel, a region where the price has traded for almost a week.
In order to establish a recovery towards a local high of $247, the bulls would first need to rise above its press time resistance. The second target resided at slightly above the $200-mark.
The ADX pointed lower from 20 and suggested that bears were losing strength as the Dogecoin approached $0.056-support. However, the price did move lower from the 50-SMA (blue) and indicated that gains could be restricted in the short-medium term. A move below the aforementioned support would likely see the 200-SMA (green) act as a buffer against further losses.
The Awesome Oscillator showed momentum on the selling side after a series of red bars emerged on the index.
Compound saw a breakout from a descending channel on low volumes after the price moved south from the lower trendline. A bearish crossover in the MACD signaled the recent price action, while the histogram noted an increase in bullish momentum. The target for the bears would be a move towards $382.6-support.
The RSI moved south and towards the lower region as COMP registered losses of over 5% in the last 24 hours. Traders looking to capitalize on the projected fall can open short positions but must wait for a breakdown confirmation over the coming sessions.
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