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Analysis

Litecoin’s price recovery could be restricted from breaching crucial resistance points

Chayanika Deka

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Source: Pixabay

Litecoin witnessed growth over the year; however, it continued to tumble after its scheduled halving event. According to data on CoinMarketcap, Litecoin was priced at $44.88 after a minor slump of 0.69% at press time.

Litecoin 1-Hour chart:

Source: LTC/USD on TradingView

Litecoin’s hourly chart exhibited formation of symmetrical triangle pattern with the price oscillating between two converging trendlines. The decline in volume in the same time frame further provided validity to the pattern. This was indicative of a price breakout on either side.

The moving averages sustained a bearish crossover on 1st December following the collective market slump and since then, 50 moving average was hovering below 100 moving average. In what seems to be a reversal of this trend, the two moving averages appeared to be converging as 50 moving noted a slight upward swing. This could suggest a potential bullish price breakout for the silver crypto.

MACD indicator was currently in the bearish realm following a bearish crossover with the signal line.

This could further indicate that the coin’s price recovery could be restricted from breaching crucial resistance points at $50. A positive breakout could lead to a climb in price to $46 level, while a further upward movement could be stalled by the bears. LTC was trading close to its support levels which stood firm at $43.

Source: LTC/USD on TradingView

RSI fell a little below the 50 median. This indicated a rising sell pressure among the LTC traders at the price range.

Conclusion:

Litecoin’s hourly chart predicted a price breakout on either side. An upward breakout prediction in the near term could be resisted from surpassing crucial resistance points.

Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.

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