The odds of a significant reversal in Litecoin are increasing as a rarely seen triple bearish divergence forms between price and RSI.
A bearish divergence is a bearish trend reversal pattern that forms when price forms higher highs while the RSI forms lower highs.
This pattern shows price continuing to increase despite falling buying pressure.
The triple divergence formed after the price created a series of higher highs while the RSI formed a series of lower highs.
Litecoin has been leading the strong performance seen recently in cryptocurrencies versus the USD.
Litecoin has been outperforming most major altcoins and has been outperforming the market leader Bitcoin.
Adding further strength to the argument that Litecoin could be due a reversal is the level that Litecoin is approaching on the Litecoin versus Bitcoin chart.
Litecoin is approaching 0.0156 Bitcoin which was an area of significant support during price drops taking place in the first half of 2018.
Price has already tested this point as resistance and has failed to retest.
It seems unlikely that price will break above this level with less buying pressure being recorded on the 4-hour chart by both the MACD and the RSI.
The price of Litecoin in USD has fallen back to the level where it broke down in October at $57.49.
Price had met resistance at this level last week but managed to overcome it after numerous tests given the high amounts of buying pressure.
However, with lower amounts of buying pressure, the price is likely to test this level as support.
Dash had a strong start to last week but failed to overcome a former level at $95 which has acted as both support and resistance.
Price tested the level during yesterdays price action but has since started to retrace.
Below price lies a level at $88 which has also acted as both support and resistance in prior price action.
A bearish divergence formed between price and RSI on the 4-hour chart before the price began falling from yesterdays high.
- Litecoin likely to reverse after forming a triple bearish divergence on the USD chart and reaching a key level on the Litecoin versus Bitcoin chart.
- Dash recorded a strong performance at the start of last week and now trades between support at $88 and resistance at $95.
- A bearish divergence from on the Dash 4-hour chart preceded its price drop from yesterdays high.
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