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Vikram
Sep 21, 2022

LTC Technical Analysis: Rising Channel Breakout Warns Litecoin Holders

LTC Technical Analysis
The LTC technical analysis displays a bearish breakout of a rising channel teasing a downfall to the $48 mark or even lower.

The LTC price action displays a bullish failure to sustain the rising channel pattern resulting in a drop below the support trendline. Moreover, the sike in the intraday trading volume supporting the breakout rally increases the chances of a price drop below $48. So, should you consider taking a short position?

Key Points:

  • The Litecoin prices show a bearish trend breaking the rising channel.  
  • The reversal from the 100-day EMA challenges buyers at $50.
  • The intraday trading volume in Litecoin is $540 Million.
  • LTC Price Chart

    LTC Technical Analysis

    The LTC price displays the bearish reversal from the 100-day EMA, breaking the 50-day EMA and the bullish pattern in the daily chart. The fallen rising channel has accounted for a price jump of 44%, but the lost bullish dominance at the support trendline signals a selling opportunity.

    The bearish candle of 8.97% drop gives the mentioned bearish breakout, but the lack of follow-through is evident by the numbers of lower price rejection candles. However, with the reversal from the 100-day EMA, the bearish influence over the 50 and 100-day EMA increases. 

    Currently, the intraday trading volume spikes, but the lack of bearish follow-through lights the bullish reversal hope. 

    After the expected retest shows sustainability below the breached support trendline, the LTC price could tumble 25% to hit the June bottom support of $41.5.

    However, in an unlikely scenario, if the buyers push the prices above the trendline, the altcoin will reenter the channel pattern and trap the aggressive short-sellers. If this theory worked out, the LTC price would resume its prevailing recovery.

    Technical Indicator

    The falling daily-RSI slope crosses below the halfway line, with the 14-day SMA starting a new downtrend. Moreover, the increasing bearish histograms fuel the downtrend in the MACD and signal lines. 

    Therefore, the technical indicators maintain a bearish standpoint for the upcoming trend. Hence, LTC sellers can find entry opportunities at the current market price.   

    Resistance levels- $55 and $60

    Support levels- $48 and $40

    LTC Technical Analysis: Rising Channel Breakout Warns Litecoin Holders
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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