- Litecoin saw a small 2% price increase as it trades at $40.
- The cryptocurrency has been trading within an ascending triangle over the past 2-weeks.
Litecoin saw a small 2% price increase over the past 24 hours as it reaches the upper boundary of an ascending triangle that it has been trading within over the past 2-weeks. The cryptocurrency must break this consolidation pattern to dictate the next direction of travel for Litecoin.
It had found support at $30 during the March market capitulation which allowed the coin to rebound and start to slowly grind higher. However, the bulls are still not in charge of the market momentum just yet which could suggest we may see Litecoin headed lower.
Litecoin Price Analysis
LTC/USD – Daily CHART – SHORT TERM
Taking a look at the daily chart above, we can clearly see the ascending triangle that is outlined. The cryptocurrency found support at $30 as it slowly started to grind higher over the past 2-weeks of trading.
It now faces strong resistance at around $41 which is provided by the upper boundary of the triangle. It has failed to break this resistance over the past 4-days but is still remaining supported at $39.
Short term prediction: NEUTRAL
As we are trading within a consolidation pattern we can consider that Litecoin is neutral at this moment in time. A break beneath the lower boundary of the triangle would turn it bearish again. However, to turn bullish, Litecoin would still have to rise much higher and break above the resistance at $52.
Once the upper boundary is broken, the first level of resistance lies at $44. Above this, resistance lies at $47.70 (bearish .382 Fib Retracement), $49.33 (1.272 Fib Extension), and $50. Above $50, added resistance lies at $52 (1.414 Fib Extension) and $54.70 (bearish .5 Fib Retracement).
Toward the downside, the first level of support lies at $39. This is followed by support at the lower boundary of the triangle. Beneath this, support lies at $36, $32, and $30.
Support:$39, $36, $35, $32, $30, $28, $25.
Resistance: $41, $44, $47.70, $49.33, $50, $52, $54.70, $56.
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Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.