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Analysis

Litecoin forms symmetrical triangle pattern as key indicators highlight bearish presence

Biraajmaan Tamuly

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Source: Pixabay

Recently, Charlie Lee’s Litecoin fell down a spot on CoinMarketCap’s top cryptocurrencies list after Tether [USDT] took over its place as the fifth-largest cryptocurrency by market cap. After surpassing Litecoin, Tether took over Bitcoin Cash’s fourth position as it pushed BCH down to fifth. At the time of writing, the digital silver was seen in the sixth position with a market cap of $3.54 billion. The price of the coin was seen falling by 1.29% over a period of one hour, and the coin was valued at $55.90. Litecoin recorded a total volume of $2.24 billion over the last 24 hours, wherein most of it came from CoinEgg exchange via trading pair LTC/ETH.

Similar to its price change, the coin’s short-term chart also revealed the presence of bears in the LTC market.

1-Hour Price Chart

Source – Trading View

The one hour chart for Litecoin revealed a continuous trend, further forming a symmetrical triangle pattern. One of the trend lines of the pattern revealed the lower highs at $57.44, $57.13 and $56.67, while the other trend line formed higher lows at $52.60, $55.14 and $55.90. As the symmetrical triangle extended, the volume was seen depreciating. However, due to the pattern formed by the coin, the direction of the breakout remains uncertain.

Source – Trading View

The indicators on the short-term chart for Litecoin were seen siding with the bears. As per the MACD indicator, the signal line was slowly seen climbing above the MACD line, further suggesting a bearish crossover.

The RSI indicator which had remained neutral for quite some time now was seen heading towards the oversold zone. Litecoin’s movement towards the oversold zone again implied the presence of bears in the market.

Conclusion

The one-hour chart for Litecoin pointed to a symmetrical triangle pattern, further causing uncertainty in the direction of the breakout. However, the aforementioned MACD and RSI indicators were highlighting the presence of bears in the LTC market.

Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.