- Litecoin is dumping instead of pumping even as the mining reward wave settles.
- The bulls have resorted to using the energy they have left to defend the support at $70.
Litecoin among other cryptocurrencies is courageously drilling the rabbit hole. This follows the reject from the levels slightly above $100 (immediately after the 2019 reward halving). The mining reward as a rule in Litecoin’s blockchain code occurring every four years. If history was anything to go by, past halving saw Litecoin double in value. However, several weeks following the most recent halving and Litecoin is dumping instead of pumping. It is hard to understand the dynamics of the halving events, therefore, let us stick to what we know best, chart analysis.
Litecoin Price Technical Picture
Multiple support areas have let Litecoin bulls down. For example, if the price sustained gains above $100 in the first week of August, we would see a further breakout towards $120. Nonetheless, the retreat into the $90 range left the price extremely vulnerable.
LTC/USD 4-hour Chart
For this reason, the sellers have continued to force Litecoin below the descending trendline. There have been attempts to recover above the 50 Moving Average (MA) but the first reject occurred at $90 and the next at $80.
Consequently, the bulls have resorted to using the energy they have left to defend the support at $70. Moreover, the losses are pushing Litecoin towards a falling wedge pattern breakout. Falling wedge patterns are interpreted as reversal indicators when they occur in downtrend like this one.
In this case, a breakout above the wedge resistance will launch Litecoin in an upward trajectory towards $100. In addition, the price is likely to find a boost after stepping above the 50 MA. All technical indicators are reacting in the favor of the bulls including the Relative Strength Index at 40 and the Moving Average Convergence Divergence (MACD) which is almost crossing into the positive region.
Litecoin Key Technical Levels
Spot rate: $72.63
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige