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Litecoin [LTC/USD] Technical Analysis: Consistent support breach seen as coin slips to ninth spot

Priyamvada Singh

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Litecoin [LTC/USD] Technical Analysis: Consistent support breach seen as coin slips to ninth spot
Source: Pixabay


As the bear charged multiple attacks, Litecoin [LTC] dipped into a deep red wherein it slumped by 12.4%.

At press time, the token was trading at a depreciated price of $26.2, with a market cap of $1.5 billion. The 24-hour trading volume was recorded at $460.1 billion.

1-hour

LTCUSD 1-hour candlesticks | Source: tradingview

LTCUSD 1-hour candlesticks | Source: tradingview

Since the last week of November, the one-hour LTC candlesticks have seen a stark support breach wherein the earlier support set at $28 was violated by the more immediate, stronger support suspended at $25.

Meanwhile, the downtrend is extending from $34 to $30 in this scenario, forming a descending triangle with a support line. A trend breakout cannot be foreseen as of now, as there is no price concentration in the market.

On the Aroon indicator graph, the downward trend is appearing to be stronger than the uptrend. This is a clear sign that the indicator is bearish on the coin.

The Chaikin Money Flow is also bearish on Litecoin as the reading line continues to lurk below the 0-line. However, this stance cannot be confirmed as the indicator is making efforts to climb up.

The Relative Vigor Index made a slight bullish crossover by the signal line to show support for the cryptocurrency. The RVGI is attempting to follow an upwards path to predict a bullish outlook.

1-day

LTCUSD 1-day candlesticks | Source: tradingview

LTCUSD 1-day candlesticks | Source: tradingview

In the one-day Litecoin price candles, a steep downtrend has been observed that runs from $89 all the way down to $56. Since August, multiple supports have seen breach by the next ones, wherein the current LTC support level is set at $28.7 but is not guaranteed to stay put as the price is undergoing consistent plunge.

The Bollinger Bands have closed slightly to depict a relatively lower volatility in the market as the bands continue to contract from the earlier broadened pattern.

The RSI is crashing severely into the oversold zone as it has just made contact with the bottom line. The indicator is clearly bearish on the cryptocurrency.

The MACD made a short-term bullish crossover but is now prepared to reverse the trend as it touches the signal line for a negative crossover.

Conclusion

The majority of the indicators in this technical analysis are suggestive of a bearish future for Litecoin. There may be low volatility observed in the market as indicated by the Bollinger Bands.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

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