Emerging Pattern May Push LTC Price To $64.6 Mark

A morning star candle formation at the $52.2 support indicates the buyers are attempting price recovery. However, no significant jump in volume activity yet means a better confirmation is needed. Will LTC bulls wrestle trend control from sellers at this support zone, or there’s more in the correction rally? 

Key points from LTC analysis:

• A possible bullish reversal from $52.2 support could encourage the formation of a double bottom pattern
• The 20-day EMA flipped into a viable resistance to bolster further price correction
• The intraday trading volume in the Litecoin coin is $465.5 Million, indicating a 21.6% gain.

Source-  Tradingview

On August 18th, the LTC/USDT pair gave a bearish breakdown from the support trendline of a rising wedge pattern. The very nature of this pattern is to continue the prevailing downtrend; therefore, this breakdown should position LTC to revisit the $40.5. So far, the post-breakdown fall has tumbled the prices by 13.2% and plunged them to $52.3

The LTC buyers tried to revert the prices higher last weekend, but they could not sustain above $57 resistance and experienced an immediate reversal. Moreover, the failed recovery aligned with the recent hawkish comment of Powel; the altcoin plugged back to $52.3.

Though the buyers are reattempting to rebound from this accumulation zone, the decreasing volume activity indicates weakness in bullish momentum. Thus, a possible recovery may surge prices by 4% before continuing the bear cycle. Therefore, a bearish breakdown from $52.5 will plummet the price 10% lower to $47 support.

On the other hand, a less likely yet possible bullish reversal from $52 may bolster the formation of a double bottom pattern. Furthermore, a bullish breakout from the neckline resistance of $57.6 will offer recovery opportunities for coin holders to drive the coin to the $64.6 mark. 

Technical indicator

Bollinger band: the coin price retesting the indicator’s lower band indicates a strong possibility for a bullish reversal. However, as long the price is under the middle, the sellers will have the upper hand. 

Vortex indicator: The widespread between the VI+ and VI- shows aggressive selling activity from coin traders. Despite a reversal attempt from the $52.2 mark, no significant change has been observed in the indicator so far. 

• Resistance Levels: $57 and $26
• Support Levels: $52.2 and $47