After being locked below $60 on the price charts, Litecoin underwent a much-needed break to the positive side. The coin posted gains of 3.98% over the last 24 hours, with the coin trading at a price of $60.24, at press time.
Litecoin 4-hour Chart
Litecoin’s four-hour chart exhibited the formation of a symmetrical triangle pattern. The volume of the coin also receded over time and was providing validity to the pattern formation. The breakout, in this case, could happen either way. LTC’s short-term price chart witnessed a subtle breakout to the positive side, but the formation of a continuation pattern was halted by the closing red candle at press time.
The 100 moving average was below the 50 moving average. This is a bullish indication. The moving averages underwent a bullish crossover on 29 October and since then, the lower moving average has continued its uptrend while the 100 moving average hovered below the candles. If a bullish breakout materializes, LTC could find its price testing $67, a level unseen since 24 September.
While a breakout to the negative side seemed unlikely, the coin found major support at points $53.08 and $48.60.
The MACD indicator was bullish and depicted the red lines getting weaker following which, the lines sustained a subsequent bullish crossover with the signal line. RSI also depicted bullish sentiment among Litecoin investors.
The silver crypto’s price climb coincided with developments released by Litecoin Creator Charlie Lee who stated that the main focus of the Foundation is to make the coin fungible. Since then, the coin has moved higher. A bullish breakout would enable Litecoin to recover significantly from the yearly lows and breach a crucial resistance level above $65.
Litecoin’s ailing price prepares for breach of descending channel
Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.
Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.
The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.
The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.
The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.
Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.