LTC/USD Chart pack - Investing properties and trade recommendations

LTCUSD (at BITFINEX) slides through sloping channel in the minor trend, while shooting star pattern candles have popped up on Monday to nudge price below 21DMAs, shooting star coupled with bearish DMA crossover signals further weakness. 

To substantiate this bearish stance, both momentum oscillators (RSI & stochastic curves) signal more dips on cards (refer daily charts). 

Currently, LTCUSD trading at $54.901 levels or down about 1.18%. 

While the major trend has already retraced 88.6% Fibonacci levels, the pair constantly slides below EMAs after bearish crossovers (refer weekly plotting), both leading as well as lagging indicators on this timeframe signal bearish momentum. 

Both RSI and stochastic curves, on this timeframe also, show constant downward convergence to indicate strength and intensified bearish momentum. 

Fundamentally, further bearish sentiment is foreseen despite the developmental announcements of Charlie Lee, the founder of Litecoin, such as, its collaboration with TokenPay which is the Swiss-based cryptocurrency payment platform, that recently in the news that it would be procuring a deal with the privately owned WEG Bank in Germany. While Derek Capo, CEO of TokenPay, also confirmed and upheld the partnership.

Investing traits: Investing or trading cryptocurrencies would be potentially highly alluring due to its nature of exponential profitability as observed in the recent past, for instance, BTC’s vigorous price rallies in 2017 from the lows of $735 to all the way beyond 19k mark (a mammoth 2600% gains). 

On the flip side, it is also perceived as risky venture as the cryptocurrency markets are associated with high degree of volatility and the industry itself is in inception stage, while Litecoin is no exception. 

Hence, it is highly imperative to meticulously assess the investment objectives, methodology and level of experience upfront while investing in a new venture. Likewise, it is extremely essential to diversify and contemplate cryptocurrency as an additional element of your portfolio. Given the high risk associated with this class of asset, it is advocated not to allocate more than 20% of the total portfolio into cryptocurrencies. When we say disciplined investment objective during project assessment, thereby, we meant reasonable capital structure, ROI, risk-appetite and timelines need to be set-out pragmatically for better risk reward ratio.

Most noticeable aspect is that, LTC has experienced a very significant correction from the all-time highs of the cryptocurrency industry in January 2018. 

With respect to its all-time high of $378, LTC has dropped about over 80% to its current price. This is a slightly larger decline than the 71% decline in the total market cap of all crypto assets. 

For now, LTCUSD seems to be shrugging-off all strategic collaboration, rallies restrain below 21-DMA – Stay short as shooting stars coupled with bearish momentum signal weakness. It is good to stay short deceptive rallies for further downside risks upto 46.038 levels (i.e. retest of 88.6% Fibonacci levels).

Currency Strength Index: FxWirePro's hourly USD spot index is displaying shy above 12 levels (neutral), while hourly BTC spot index was at 160 (highly bullish) while articulating (at 09:47 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex