top of page
Writer's pictureAdmin

Litecoin Price Analysis LTC / USD: Strict Confinement

  1. Litecoin is trading in its narrowest 21-day range since March this year

  2. Short-term technical analysis shows a potential bullish pattern taking shape

  3. The daily time frame highlights that if a rally fails to materialize then the LTC / USD pair could drop towards the $45.00 level

 

Litecoin is still trapped within an incredibly narrow trading range, after a bullish rally failed to materialize. In fact, the cryptocurrency is trading in its tightest three-week trading band since March this year. An early week rally towards the $73.00 level failed to generate sustainable gains, with the LTC / USD pair soon slipping back under the $70.00 level.

The longer that the LTC / USD pair fails to rally from current trading levels, the greater the chance that we may see the cryptocurrency falling to a new multi-month trading low. A break below the $60.00 support level may provoke an even deeper decline towards the $45.00 level.

In percentage terms, the LTC / USD pair could lose a further twenty-five percent on its value if it does breach the multi-monthly trading low, around the $60.00 level and a decline towards the $45.00 level.

Short-term technical analysis shows that the $68.00 and $65.00 levels are currently the strongest forms of technical support before the $60.00 level starts to come back into focus.

Short-term technical analysis shows a glimmer of hope for LTC / USD bulls, as the four-hour time frame is highlighting a bullish inverted head and shoulders pattern that could form if buyers can rally the cryptocurrency towards the $80.00 resistance level.

The LTC / USD pair’s 200-period moving average on the four-hour time, which is located around the current monthly trading high, is currently the main technical resistance area blocking a rally towards the $80.00 level.

If the bullish pattern is formed around the $80.00 level, the upside projection of the pattern is around $20.00, which would then take the fifth largest cryptocurrency by cap back into triple-digit territory.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Litecoin is neutral, at 48.00 %, while the overall long-term sentiment towards the cryptocurrency is considerably more bearish, at 28.00%.

LTC H4 Chart September 13 by TradingView

 

Upside Potential

The four-hour time frame is showing that the $73.00 level is the main technical barrier before the near-term bullish target, at $80.00 starts to come into focus.

The daily time frame highlights that the LTC / USD pair’s 50-day moving average, at the $80.00 level, is a key technical region which bulls need to break. The cryptocurrency’s 200-day moving average is located at the $87.00 level, and a move above this key technical metric should encourage further LTC / USD buying.

LTC Daily Chart September 13 by TradingView

 

Downside Potential

The four-hour time frame is showing that the LTC / USD pair is currently trapped between the 50-period and 200-period moving averages. The moving averages effectively highlight the next technical breakout zone, between the $68.00 and $73.00 levels.

The daily time frame is showing that the LTC / USD pair is trading below its major long-term moving average, with a bearish death cross currently underway on daily time frame.

 

Summary

Litecoin will soon need to stage a meaningful short-term rally or the cryptocurrency could see a worrying decline back towards $60.00 support level.

Both time frames highlight the $80.00 level as particularly important if the LTC / USD pair can find short-term buying interest above the $73.00 resistance level.

Check out our coin guide for an introduction to Litecoin.

We also wrote a DARE for the project, analyzing the future prospects of the Bitcoin competitor.



Litecoin Chart

Chart byCryptoCompare #ccpw-ticker-24552 .ccc-chart-header { background: #1c71ff} #ccpw-ticker-24552 #ccc-chart-block .exportBtnTop, #ccpw-ticker-24552 a.tabperiods.tabperiods_active, #ccpw-ticker-24552 .coin_details { color: #1c71ff; background: rgba(28,113,255,0.15); } #ccpw-ticker-24552 .coin_details { border: 1px solid rgba(28,113,255,0.16); } .ccpw-container_chart #ccpw-ticker-24552 .coin-container:after, .ccpw-container_four #ccpw-ticker-24552 .coin-container:after {border-color:#ccc !Important;}

1 view0 comments

Comments


bottom of page