Litecoin could profit from descending channel pattern breakout
Litecoin has been trading close to its support point and despite minor surges, the silver crypto failed to post impressive rallies after August this year.
Litecoin has been trading at $46.09 after posting 0.21% gains over the last 24-hours. At press time, the coin recorded a market cap of $2.94 billion and 24-hour trading volume of $2.29 billion.
Litecoin 1-Day Chart:
Litecoin’s price was oscillating between two downward sloping parallel lines. From mid-June 2019, LTC’s price entered a descending channel pattern. This was indicative of a bullish breakout in the near-term.
The moving averages sustained a bearish crossover on 10th August, right after the silver crypto’s block reward halving. Since then the moving averages mimicked the declining price of the coin. The moving averages appeared to be converging but 50 daily moving average was still hovering below 100 daily moving average. Further, the moving averages were above the price candles. This indicated a strong bearishness in the LTC market.
If a breakout to the positive side materializes, LTC bulls could climb to $55, a level unseen since 20th November. A stronger pull could drive the coin to touch its resistance point at $78. The coin’s price was supported at points $40.73 and $32.96.
The MACD indicator exhibited a bullish price momentum in the near-term after a long bearish dominance. Though in the oversold zone, the RSI indicator hinted at a spike upward near the 50 median.
The long-term price prediction for Litecoin exhibited bullish projection for the coin as the price bounced between the descending channel. A bullish breakout would possibly lead the way for the LTC bulls to breach significant levels at $55.25 and $78.2