Litecoin price analysis: at risk of falling below $40
07:37, 26 September 2020
Litecoin has turned technically bearish for the first time in eight weeks, as a number of altcoins experience heavy double-digit losses.
Litecoin price analysis shows a bearish price pattern, warning that the cryptocurrency is at risk of falling below the $40 level.
Litecoin medium-term price trend
Litecoin has eroded its strong summer gains, as the sell off in the broader cryptocurrency market shows few signs of stopping.
Litecoin technical analysis shows that the LTC/USD pair has broken below a large symmetrical triangle pattern.
The daily time frame shows that the cryptocurrency has fallen below the triangle pattern, after breaking below the $48 support level.
According to the size of the triangle, the LTC/USD pair may now decline towards $38 and possibly $36.
A break below the current monthly low, around the $43 level, exposes the cryptocurrency to further losses towards the mentioned targets.
It is noteworthy that the RSI indicator has reached its lowest level since March. This may indicate that bullish correction may occur.
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Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a bearish short-term bias while the price trades below $51.
The four-hour time frame shows that a bearish head-and-shoulders pattern has been activated.
Technical analysis highlights that the breakout remains valid while the price trades under the $51 area.
According to the overall size of the bearish pattern, the LTC/USD pair could fall towards the $33 level over the short term.
Traders should note that key short-term resistance for Litecoin is located at the $46, $48, and $51 levels.
Litecoin technical summary
Litecoin technical analysis suggests that the cryptocurrency could experience further downside, below the $40 level.
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