Litecoin Forms Symmetrical Triangle – Will Bulls Advance?

Briefly

  • LTC witnessed its price falling by more than 8% last week.
  • Litecoin forms a symmetrical triangle.
  • 200 MA serves as the alt’s support.

Litecoin has had sluggish price moves since last month as the token failed to reclaim the consolidation territory of late May to early June. The alternative coin has revived about 22% of its plunges from the May highs of $415. However, Litecoin appears to remain behind, considering that the entire cryptocurrency market has gained around 65% of its overall losses.

Such behaviors might reflect insufficient hype in the Litecoin blockchain and inadequate platform developments. The crypto market has survived without massive catalysts to ensure extended rallies. Meanwhile, if the coming week sees BTC breaking to the upside, LTC will also register uptrends.

Litecoin has maintained its price action beyond the critical support at $161 to $166 since August 10. Over the past few weeks, the token has experienced price consolidation as it tries to break over the crucial resistance level. The coin’s actions created a symmetrical triangle shape that suggests a breakout in the coming four days.

The altcoin has relied on the pattern’s lower trend to prevent losses for multiple weeks. Meanwhile, Litecoin has to break and maintain above the massive resistance at $172 to confirm uptrends and bullishness.

LTC Price Analysis

As Litecoin near the pattern’s end, investors should be diligent for a breakout towards either direction. If the token breaks beyond the upper trend-line, bulls need to prepare for a massive resistance at $181 to $188. Adequate bullish strength to conquer this level will see LTC towards the $200 mark.

Meanwhile, if Litecoin breaches the pattern’s lower border, the crypto will have its initial support at $161. Before LTC dips to this level, bears have to drag the token under the 200 MA, the token’s support for more than one month. If the asset fails to maintain this level, it might move lower towards $155.

The Stochastic RSI indicates that strength tries to shift towards the overbought zone. If the indicator maintains over the 50-area, LTC will have an easy path towards the pattern’s upper region.

Intraday Analysis

  • Spot rate – $173
  • Trend – Neutral
  • Volatility – High
  • Support – $166
  • Resistance – $175