Litecoin price analysis: could drop below $50 level
09:29, 28 August 2020
Litecoin is starting to appear more bearish in the short term, as the cryptocurrency weakens below the $55 level.
Litecoin price analysis shows that the cryptocurrency may be preparing to drop below the $50 support area to attract fresh buying interest.
Litecoin medium-term price trend
Litecoin is turning lower alongside a number of other major coins as the cryptocurrency struggles to attract buying interest below the $60 level.
Litecoin technical analysis shows that the LTC/USD pair may perform a test of a former key breakout area below the $50 level.
The daily time frame shows that the LTC/USD pair staged a major technical breakout after moving above an important trendline last month.
Technical analysis on the daily time frame shows that the key trendline in question is now located around the $47 level.
Weakness below the $50 support level may see the LTC/USD pair testing the key former breakout zone.
Bulls may look to enter from below the $50 level in anticipation of a powerful counter-rally, and further medium-term gains towards the $80 area.
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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 the $57.50 level.
The four-hour time frame shows that a head-and-shoulders pattern has recently formed, following the reversal from the $69 level.
A sustained breakout under the neckline of the bearish pattern, around the $57.50 level, could see the LTC/USD pair moving sharply lower.
According to the size of the bearish pattern, the LTC/USD pair could fall towards the $45 area over the short term.
Litecoin technical summary
Litecoin technical analysis shows that the cryptocurrency may fall below the $50 level if a bearish head-and-shoulders pattern is activated.
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