Emerging Pattern May Push LTC Price To $64.6 Mark

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Published 10 mins ago

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.

LTC/USDT ChartSource-  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

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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