Litecoin’s spot value mirrors the rest of the best altcoin market, with LTC altering fingers spherical $70 after dipping larger than 6% beforehand 24 hours. The cryptocurrency may also be shopping for and promoting nearly 18% down over the earlier seven days.
In the meanwhile, Litecoin bulls try to keep up bears at bay throughout the vital $70 assist stage. Within the occasion that they deal with to flip momentum to their facet, elevated buy stress would possibly see LTC value rise to $80. Above this value stage, bulls would possibly function at $100.
Fairly the other, a continuation of the breakdown observed over the earlier two days would possibly see Litecoin slide to lows of $65.
Litecoin value: technical outlook
LTC/USD has not too way back broken beneath the 50-SMA ($81.02) and 200-SMA ($75.72) on the 4-hour chart.
The Relative Power Index (RSI) reveals the cryptocurrency is at current trending oversold, nonetheless with a hidden bullish divergence.
LTC/USD 4-hour chart. Provide: TradingView
Whereas bears appear on excessive of the movement temporary time interval, the technical perspective suggests a bullish flip is the next fast path for LTC/USD.
The above 4-hour chart reveals that Litecoin is near the tip of a descending wedge pattern. The pattern’s formation signifies that bulls are susceptible to see a major breakout. If the scenario performs out as anticipated, restoration to the 200-SMA ($75.72) and 50-SMA ($81.02) would possibly depart bulls eyeing the psychological stage of $100.
LTC/USD every day chart. Provide: TradingView
On the every day chart, LTC/USD is solely above the 50-SMA (69.81), which is vital if bulls are to forestall extra losses. However, the potential for a major draw again is unlikely given the outlet to the 200-SMA ($54.27). Because of this bulls are inclined to take in the short downward stress and thwart bears’ need for further blood.
The potential for a bullish flip will improve if a potential buy signal appears throughout the subsequent shopping for and promoting session. In the intervening time, the every day TD Sequential indicator has printed a pink eight candlestick and the seems of a pink 9 would possibly signal an influx of upside stress.
Upward movement for LTC bulls will face slight resistance on the 61.8% Fibonacci retracement stage ($75.22). A break above this hurdle would see bulls confront resistance on the 23.6% Fibonacci retracement stage ($86.26).
If bulls fail to hold prices above $70, a drop to $65 might be going. As confirmed on the every day chart, the extent would possibly current for a double bottom pattern.