For Litecoin's Price, This Week's Close Could Be Pivotal

Litecoin's close this week will likely set the tone for the next major move in prices, the technical studies indicate.

The cryptocurrency saw moves both ways last week - prices hit lows and highs of $72.58 and $84.24, respectively - before closing on Sunday on a flat note at $80, signaling indecision in the marketplace.

This leaves litecoin at the mercy of the price action this week, meaning a convincing bullish move - preferably above last week's high - could well entice bargain hunters and lead to a notable price rally.

Litecoin created a doji candle last week at the key support of $79.31.

A doji candle normally represents indecision in the marketplace.

When viewed against the backdrop of the sell-off from its record high of $369, the doji represents bearish exhaustion.

If the cryptocurrency close above $84.24 this week, it would confirm a bullish doji reversal.

Further, the relative strength index is in bearish territory, holding well below 50.00.

Last but not least, the long-term outlook remains bearish while litecoin is trading below the 50-week moving average, currently at $124.70.

A weekly close below $72.58 would signal a continuation of the sell-off from the April high of $183.00.