- LTC is trading within a descending channel with overhead resistance at $197
- The next target if it breaks above $197 is $204
- The first support level is at $189
Litecoin Price Analysis: General price overview
Litecoin has formed a descending triangular structure with a support line near $189 and a resistance structure at $194. The coin came within the $197 range, at which it was rejected after setting its intraday high on the 24-hour chart. $197 was the head of a head and shoulder pattern with a neckline passing through the current resistance on the 4-hour chart $194. However, the price action moved within a descending trendline from the neckline all the way below the first pivot resistance at $189. At which point, the first angle of the descending triangle begins its base.
Buyers attempted to consolidate at this point only to push the price to $190 and face stiff rejection, which has resulted in a downward correction on the 1-hour chart below the 10-day moving average convergence divergence (MACD).
Litecoin Price Analysis: Litecoin price movement on the 24-hour chart
Litecoin was able to close yesterday’s chart with a gain of 2.33% and hit $186.78. The coin continued at an early morning uptrend that faced rejection at $188. Buyers have since attempted to recover the price and beat two critical resistances: the first and second pivot resistance at $197 and $204. A rally in the afternoon was able to win support at $190 and test the first resistance. As a result, the coin crossed to oversold and corrected below $190 once again with a descending triangle.
Bulls will need to overcome the descending triangle structure in order to rally towards $204. Breaking above the $190 levels calls for support from the broader market, which will catapult buyers and extend another cryptocurrency rally.
The bull sees to be in control granted a relative strength index pointing towards the overbought; nonetheless, if the bears can overcome buying pressure, chances of bringing the first pivot resistance into play are high.
Litecoin Price Analysis: Litecoin 1-hour price chart
Litecoin is hovering around the $190 level — the tip of the descending triangle on the 1-hour chart suggests an opportunity for buyers. Chancers of a possible breakout out of the structure are high, extending another uptrend to $200. At the time of writing, the coin is trading at $189 a piece. This level seems to be faced by lots of selling pressure as the coin has already rallied to a 1-hour high of $190, but the bears seem to be holding back to $189 and $188.
Litecoin Price Analysis: Conclusion
What lies are either of the following possibilities – an extended sell-off would bring the price of Litecoin below $185. This could end with having the coin touching low levels at the sub $180 levels. On the other hand, an extended buy-off will form a near-term bullish pattern above $195 and $197- which could end up hitting a weekly high of $210.