LTC Price Analysis: Bearish Pattern Lurking on Litecoin; is it Worth Holding?

Amid the recent recovery sentiment in the crypto market, the LTC/USDT pair bounced back from the $40.68 low. Furthermore, the bull run shows a set of new higher and higher lows within a rising wedge pattern. Though this pattern puts altcoin under reversal threat, a breakout possibility may turn the tables around.

Key points: 

• With a 4% intraday jump, the LTC price rechallenges the pattern resistance trendline
• Wedge pattern completion may dump coin price by 26.7%
• The intraday trading volume in the Litecoin coin is $396.7 Million, indicating a 6% loss.

Source-Tradingview

Under this pattern’s influence, the LTC price rose 58.7% and currently trades at the $64.23 mark. However, this bearish continuation indicates an imminent downfall once the coin price breaches the support trendline.

Anyhow, the current bull cycle within this pattern was triggered when the LTC price rebounded from the support trendline on August 10th. In the past four days, the bullish reversal pushed the price 14.5% higher, nearing the combined resistance of $64.5 and the resistance trendline.

With coin traders respecting this pattern, the LTC price has a higher chance to revert from the overhead resistance and plunge to the lower support trendline. Furthermore, the price action approaching the pattern’s apex may soon result in a trendline breakdown.

If sellers succeed in doing so, the LTC price may drop 26.7% and hit the $47.17 mark.

On a contrary note, a less likely yet possible upside breakout from the resistance trendline will release the LTC price from the correction threat. Thus, an upside breakout from this pattern will accelerate the bullish momentum and surge the price to the $74.5 mark.

Thus, until the support trendline is intact, the holder could maintain a bullish sentiment. 

Technical indicator

EMAs: the 100-day EMA wavering around the resistance trendline puts an additional barrier against the price recovery. However, the 20-and-50-day EMA slope flipped into viable support levels would assist buyers in sustaining the ongoing recovery.

Vortex indicator: a bullish crossover among the fast and slow supports the breakout theory from the wedge pattern. However, a significant gap between these slopes is required to validate buyers’ commitment.

• Resistance Levels: $64.5 and $74.6
• Support Levels: $54.7-53.7 and $47.13