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?
Source-Tradingview
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.
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