- LTC diminished from a high of $182.69 to a low of $130.60 in Sunday’s intraday session
- The LTC/BTC pair is trading at 0.00414 BTC with a loss of 12.58% at press time
- The current price of LTC is $140.79 established on the back of a 21.44% decline in price in the last 24 hours
LTC has been vulnerable to the bears consequently after it acquired an ATH of $388 on May 9th. Since then the coin projected a downtrend as a result of paramount selling pressure and the violation of the most effective support trend line.
The day after the breach of the support trend line was followed by a recovery phase which was quite the knee-jerk rally to the previous day’s massive decline.
The next three days forecasted inevitable bearishness as evidenced by the three back crows on the daily chart.
In accordance with the pivot points, the next key support is placed at $120 which is in confluence with the 500 EMA. This particular level reveals a ravishing opportunity for investors who intend to buy LTC at a discount.
The weekly chart of LTC forecasts the termination of the bearish momentum on account of the current price being in sync with the 2018 lows. The above statement can be held accountable by the fact that the Stochastic RSI is on the brink of entertaining a bullish crossover.
LTC projects bearish pennant on the 4-hour chart
The price action on the 4-hour chart highlights the fact that the LTC is confined inside the bearish continuation pattern called the descending broadening wedge.
Last week’s bloodshed momentum contributed to the formation of a bearish pennant chart pattern. LTC witnessed a breakout in today’s intraday session which was accompanied by three red candlesticks which are explicit on the daily chart as well.
LTC needs to steer clear of the bearish FIB 0.232 resistance which exposed the coin to weakness as a consequence of aggressive sellers. In contrast, a break above the level of $233 (FIB 0.382) will justify the fact that a recovery phase is imminent.
The RSI has tanked towards its Wednesday’s lows at 23 thus making LTC the most affected coin by Bitcoin Dominance. An oversold RSI demonstrates the fact that the buyers might seize this initiative to buy LTC at a discount.
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CONCLUSION: The failure of LTC to hold the 500 EMA as support will expose the next support level of $101. Currently, the technical indicators are flashing a strong sell signal as dictated by the Moving averages and MACD which is hovering in the negative territory. LTC is subjected to extreme volatility in the next one week as a consequence of the CVIX disclosing a red signal.
SUPPORT : $101 and $120
RESISTANCE : $233