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Litecoin Price Analysis: Bearish factors at play, breakout imminent?

Litecoin price analysis

TL;DR Breakdown

  • Litecoin price analysis is bearish for today, low by nearly 2% for Wednesday’s candle
  • The nearest support for the token rests at $160, while resistance is at $166.8
  • The patterns are bearish, indicating that the prices are still in a downtrend

Litecoin hasn’t been performing quite well lately after the huge sell-off that traders experienced last Saturday. The unexpected sell-off led to a near-14% sell-ff for LTC. However, the Litecoin price analysis for today shows that the prices are sluggish as the token tries to regain previous support levels.

The data from CoinmarketCap shows that the trading volume of Litecoin rose by 10.98% and is currently at $1.7 billion. Furthermore, the market cap of the token rose by nearly 1.15% and currently rests at $11.3 billion. Meanwhile, the market rank of the token stands at 18.

Litecoin opened the daily candle at $161.8, reaching a daily high of $170.3 from the daily low of $155.8. The current price of the token rests at $163.

Litecoin price analysis via patterns

The pattern seen below in the daily chart for LTC/USDT trading pair is called a “descending channel,” which means that Litecoin prices will remain bearish for the short term. As per our Litecoin price analysis, the token is forming lower lows and lower highs, following the two parallel trend lines and continuing the uptrend.

Litecoin price analysis
Litecoin price analysis on the daily chart by TradingView

The chart below is the LTC/USDT monthly chart which shows the formation of a ‘descending triangle,’ a bearish chart pattern. This presence of this pattern on the monthly chart shows that the Litecoin price analysis is bearish for a longer time frame, and a breakout can be expected, leading to a price crash. However, this won’t be the scenario if either of the trend lines below is shattered.

Litecoin Price Analysis: Bearish factors at play, breakout imminent? 1
Litecoin price analysis on the monthly chart by TradingView

Litecoin price analysis via indicators

Litecoin price analysis on the daily chart below using indicators concludes that bears are still in charge. The MACD indicator shows that the MACD line (blue) continues below the signal line (orange). This means that selling pressure is high, represented in the red MACD histogram.

The RSI levels indicate that the token is in the clutches of bears, but the price action did not enter the bearish region. As a result, the gradient is slightly positive but, the volume is not massive enough to cause a push in the other direction.

Litecoin Price Analysis: Bearish factors at play, breakout imminent? 2
Litecoin price analysis on the daily chart by TradingView

Conclusion

Litecoin is a very promising token known for its lightning-fast transaction speed. As per a recent tweet from the Litecoin official Twitter handle, the token is the second most transacted cryptocurrency on the entire BitPay platform.

For the current time frame, Litecoin remains bearish, and our Litecoin price analysis confirms this. If you want a deeper look at the prices, visit the Litecoin Price Prediction.

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Dennis Mugambi

Dennis Mugambi

Dennis is a content writer with a deep understanding of the blockchain domain and cryptocurrency field. He infuses cold data with flair to make technology and finances mind-blowing. His reports both fascinate and awaken the readers.

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