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
- Crypto Market Correction Intensifies As S&P 500, Dollar Index Enter Dangerous Territory
- BitGo To Follow Gemini’s Footsteps With US IPO After 4x Revenue Surge
- Michael Saylor Predicts Bitcoin Will Outperform S&P 500 Forever
- Crypto Market Eyes Upside as FTX Set to Repay $1.6B to Customers
- Elon Musk’s X Vows Crackdown on Bribery Network Behind Crypto Scam Accounts
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
