Litecoin's price could spiral below key support after symmetrical triangle closes - AMBCrypto
Connect with us

Analysis

Litecoin’s price could spiral below key support after symmetrical triangle closes

Chayanika Deka

Published

on

Litecoin's price could spiral down below key support after symmetrical triangle closes


Over the last week, Litecoin has lost over 24% and the coin has failed to rebound and was priced at $54.93 at press time, after falling 1.86% in the past one hour. The silver crypto had dramatically lost value over the past month and this trend has been continuing since its halving.

Litecoin 1-hour Chart:

Source: TradingView

Litecoin’s hourly chart exhibited formation of a symmetrical triangle pattern with price levels of the coin treading between two converging trendlines. Higher highs for the altcoin stood at $58.40, $56.91 and $56.51 and the higher lows on the one-hour chart were found at $52.55, $53.93 and $54.50.

The continuation of price action ranging within the symmetrical triangle pattern was indicative of a price breakout on either side. However, MACD indicator, with the reading line below the signal line, projected a bearish phase for the altcoin. This further suggested that the price of the coin could potentially slide lower to the support at $52.68. The above chart also indicated that resistance at $65 could remain potentially untested in the near term.

Litecoin 4-hour Chart:

Source: TradingView

Litecoin’s four-hour chart pictured formation of an ascending triangle with prices moving between a horizontal and an upward sloping trendline. The chart exhibited a breakout in the near term with the price consolidating and the corresponding decline in volume. This was indicative of a potential price breakout in the upward direction.

However, 50 moving average line rested below the 100 moving average, suggesting a bearish market trend for the coin.

Conclusion:

Despite signs of bullish divergence by ascending triangle formation, short-term Litecoin charts edged with the bears. A potential price breakout downward can cause the silver crypto’s price to drop severely.

Chayanika is a full-time journalist at AMBCrypto covering the US and UK markets. A graduate in Economics, and majoring in Political Science she focuses on the impact of regulations across different geographies.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.