LTC Technical Analysis: Is A Dump below $50 on the Cards?
Table of contents
Key Points:
Source- TradingView
LTC Technical Analysis
On August 18th, the LTC prices broke below the support trendline to continue the prevailing downtrend. Therefore, this breakdown should have positioned the price trend to revisit the $48.5.
The falling prices maintain our bearish wedge pattern in the daily chart, with higher price rejection candles reflecting an increase in selling pressure. As a result, the prices revert from the resistance trendline, projecting a potential downfall in the coming days. Moreover, the supply pressure from the 50-day SMA reflects an increased possibility of a prolonged downtrend.
Despite the general belief that the bearish veg pattern gives a bullish breakout, the litecoin prices may shortly dip below the support trend line. If the selling pressure grows, the LTC prices may shortly break below the psychological mark of $50 to test the $48.50 support level. Conversely, a bullish reversal breaking above the resistance trendline will retest the broken $60 horizontal level.
Technical Indicators
The RSI slope maintains a declining trend as it breaks below the halfway line. Furthermore, the MACD indicator displays the bearish gap between the fast and slow lines increasing as they cross below the zero line. Hence, the risk of LTC prices plummeting under the psychological mark of $50 increases drastically.
Resistance Levels: $55 and $60
Support Levels: $50 and $48