Litecoin’s breach of descending pattern adds to its misery
Litecoin lost its position in the top five this year and slipped to the sixth position on CoinMarketCap. Even though the coin has been recovering from several falls, the bears in the market have been very dominant. According to data, the sixth-largest coin noted double-digit losses in September and has carried on this way in October too, by losing its value by almost 10%. The value of LTC stood at $52.16, at press time, with a market cap of $53.03 billion.
The longer-term chart for LTC painted a picture of a breached descending triangle pattern. The bearish pattern, characterized by two trend lines, one which marked the lower highs at $60.96, $57.93, and $56.62, while the second line provided the base to the triangle with support marked at $54.97. The price along with the volume was consolidating and ultimately, the price of LTC fell at the breach of the pattern.
LTC fell by 10%, taking its price from $56.62 to $50.93. The 50 moving average was under the 100 moving average and both averages rested above the candlesticks, pointing to an extremely bearish pattern.
MACD and RSI too pointed to the extreme bearishness in the market. MACD line was under the signal line with growing momentum, while RSI entered the oversold zone, making it a bearish market.
Litecoin’s price has been falling for the past few weeks and it has not received any relief from the bears. With the breach of the descending triangle, the coin has fallen further by 10% and its price stands at $52.36, at press time.