- Litecoin RSI has crossed 30 and is pointing towards the overbought region
- Bears attempting to sink the price from the neckline of the H&W pattern
- Litecoin has its higher targets at the 20-day exponential moving average at $277.
Litecoin price analysis: General price analysis
Litecoin RSI has crossed 30 and is pointing towards the overbought region after the coin recovered from a slump that took place in the early trading hours. The coin had just woken up to a good start on the daily chart, a long candlestick shot from yesterday’s close at $166 to today’s opening price of $170. Buyers could not withstand the concentration of sellers around this price point causing the bears to invalidate the uptrend and initiate a pullback to the daily low of $164.
The bottom was within a trough pattern, which has only been corrected on the 4-hour chart, after an upward correction to $172. Notwithstanding, the tug fight between the bulls and the bears did not end there, Litecoin price movement marked a head-with-shoulder pattern on the 1-hour chart. The head lying at the 24-hour high of $173.35 and the neckline passing through $172.
Litecoin price movement in the last 24-hours: Pullback extending all the way to $143
The bears are attempting to sink the price of the coin from the neckline of the head-with-shoulder pattern on the 1-hour chart. If they can break the support at $170, a strong downtrend from this price level could cause correction to the lower consolidation boundary at $143. On the upper limits of the boundary, lies a temporary resistance preventing the upward correction to $224.
Bulls need to overcome this resistance in order to gain any substantial momentum needed to beat the key psychological hurdle at $200. Failure to wage support from the broader market and activate a demand zone between $175 and $180, Litecoin price could fluctuate below $145 and validate the next bearish support at $131.
Litecoin 4-hour price chart: Falling wedge from the tip of the head
At the time of writing, Litecoin has broken away from the head-with-shoulder pattern and has currently formed a downsloping wedge from the tip of the head. The coin is hovering between $169 and $170, a critical danger zone that could cause a correction to lower supports. The downside pivots begin at $143 and end at last week’s right shoulder low of $163. Inaction by buyers could cause a bearish pullback to even a lower level such as the May 23 market crash low of $117.
During this Litecoin price analysis press time, LTC is trading at $169 against the US dollar.
Litecoin price analysis conclusion: Sellers are in control
Litecoin has its higher targets at the 20-day exponential moving average at $277. Will the bulls manage to sustain the price action at levels beyond $200, there is a huge likelihood of facing the 20-day EMA, which is a concentration camp for sellers. However, the price could turn downwards anywhere between $200 – $280, even if the bulls manage to be in control during the weekend. Overall, Litecoin price analysis is bearish, however, a break above $185 is the first indication of an uptrend.
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