LTC/USD analysis: Will Litecoin break the important $27 support level?
|From last week’s high at $38.5 the price of Litecoin has fallen by over 15% and is trading at around $32.8 on FXOpen now.
The downtrend line (purple line) on the hourly chart hasn’t been broken yet, but as the price action is showing higher lows and lower highs we may see a breakout soon. The price action is indicating that the sellers and the buyers are getting closer to each other so that breakout can happen anytime.
As the Minute correction target was met (with a wick) on the horizontal support level at $27.74, the breakout might occur from the upside breaking the downtrend’s resistance line.
Zooming out to the 4-hour chart, the downtrend’s resistance has been broken two times but both times resulted in a straight downfall. We shouldn’t assume that the short-term recovery has started until the LTC/USD pair goes beyond the prior horizontal support level at $33.29.
However, if the price of altcoin continues its downward trajectory there is a strong support at the $27 level. Judging by the price action and the wicks from the upside there are some significant buyers there.
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.