LTC Technical Analysis: Reversal in Litecoin Warns Drop Below $50
Table of contents
The reversal from the 100-day EMA in the rising channel pattern tests the 50-day EMA to reach the support trendline. However, the declining market condition due to the increasing inflation teases a fallout of the rising channel. So, should you reconsider buying at the support trendline?
Key Points:
Source - TradingView
LTC Technical Analysis
The prices rose 24.5% to a record high of $67.5, thanks to a positive recovery from a support level of $52.7. The technical chart so reveals that the price of Litecoin (LTC) has broken over the multiple-month barrier of $64.7. Over the last three months, the price has repeatedly reversed against this resistance level.
A bullish breach from this barrier will present an extended opportunity for interested traders with the proper increase in volume activity. Investors must watch for a daily candle to close over this barrier, which might drive Litecoin prices up to $70.5.
The LTC has also fallen below the previously indicated barrier and lost most of its intraday gains. A long-wick rejection at the previously noted significant border ($64.7) is, therefore, adverse for buyers as it may further fuel a bearish reversal.
Prices might drop 7% in the event of a reversal, reaching the local support level of $58. The rising channel pattern, which is a bearish conflict pattern, suggests that the price of Litecoin is finally headed for a significant drop.
Technical Indicators
The RSI slowly drops to the halfway line reflecting a huge weakness in the underlying bullishness. Additionally, as the buying pressure decline, the MACD indicator teases a bearish crossover between the fast and slow lines.
Therefore, the momentum indicators display growth in selling pressure teasing a prolonged correction in LTC prices.
Resistance Levels - $50 and $48
Support Levels - $64 and $75