Litecoin Price Analysis: LTC/USD pennant pattern hints return to $20
|- Litecoin price under grave danger of sliding to $20 if the pennant pattern support is shattered.
- Litecoin is likely to take up a sideways trading action based on the leveling RSI.
Litecoin price is struggling to hold above $35 on Monday during the European session. Due to the high volatility in the cryptocurrency market, up and down movements are numerous. Earlier, LTC/USD upside action hit a wall at $37.45. On the downside, an intraday low has been formed at $34.55. The price has advanced upward by 1.7% on the day despite the bearish trend and expanding volatility.
The daily chart shows the price trading in the confines of a bearish pennant pattern. The recent gains above $40 formed a weekly high at $44. The pennant resistance stayed in place untested and unlikely to broken in the coming sessions on Monday. On the flip side, LTC is testing the pennant pattern support. If broken, the breakout is likely to trigger a bearish action (selloff) under the $30 support, March support at $25 and test the next support target at $20.
Meanwhile, LTC/USD is trading at $36 at the time of writing. The RSI’s horizontal motion suggests that sideways action could to take center stage. However, selling activities cannot be ignored especially if the 50 SMA continues to close the gap between it and the 200-day SMA. To be on the safe side, support needs to be established above $40 and which will allow the buyers to focus on levels around the psychological $60.
LTC/USD price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.