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Litecoin price analysis: gains expected above $47

By Nathan Batchelor

19:02, 2 October 2020

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Litecoin price analysis

Litecoin is attempting to move above critical resistance, despite the cryptocurrency suffering its largest monthly loss in six months.

Litecoin price analysis shows gains above the $47 resistance zone could provoke a major rally towards the psychological $50 level.

Litecoin medium-term price trend

Litecoin is starting to recover higher, after sellers failed to break the technically important $44 support level earlier this week.

Litecoin technical analysis shows that the LTC/USD pair may be preparing to move back inside a large symmetrical triangle pattern.

Litecoin technical analysisThe daily time frame shows that the cryptocurrency fell towards the $41.50 area earlier this month, after sellers broke below a symmetrical triangle pattern.

According to technical analysis, if the LTC/USD pair can move back above its 200-day moving average, around the $47 level, then bulls may test towards the bottom of the triangle pattern.

Technical analysis highlights that the bottom of the triangle pattern is currently located around the $51 resistance level.

To the downside, failure to move the price above the $47 area could result in the LTC/USD pair testing back towards the $44 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 $47.

The four-hour time frame shows that a bearish head-and-shoulders pattern is currently looming over the LTC/USD pair.

Litecoin technical analysisTechnical analysis highlights that the pattern remains valid while the price trades below the $47 resistance level. 

If bulls invalidate the pattern, then the LTC/USD pair could rally towards the $51 area over the short-term.

To the downside, a break under the neckline of the pattern, around the $44 level, could see the LTC/USD pair falling towards the $41 area.

Litecoin technical summary 

Litecoin technical analysis highlights that the cryptocurrency could rally towards the $51 area if the $47 resistance level is overcome.

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