Litecoin performed a false breakout above its 200-day moving average last week, as bearish news surrounding the cryptocurrency exchange BitMEX caused the LTC/USD pair to reverse towards the $43 area.
Litecoin price analysis now shows that multiple triangle patterns are pointing to a major technical breakout.
Litecoin medium-term price trend
Litecoin is once again attempting to move above its 200-day moving average, as the cryptocurrency continues to enjoy strong dip-buying demand.
Litecoin technical analysis shows that the LTC/USD pair is trapped inside multiple triangle patterns.
The daily time frame shows that the cryptocurrency is currently trapped inside a symmetrical triangle pattern, between $43 and $47. A much larger symmetrical pattern is also seen on the daily time frame between the $51 and $58 resistance zones.
According to technical analysis, the LTC/USD pair now needs to anchor the price above its 200-day moving average, around $47, to encourage a rally towards the $51 area. To the downside, failure to break above the LTC/USD pair’s trend-defining 200-day moving average could cause the cryptocurrency to fall back towards $40.
Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a bearish short-term bias while the price trades below $48.50.
The four-hour time frame shows that a bearish head-and-shoulders pattern remains valid on the daily time frame. Technical analysis highlights that the pattern remains valid while the price trades below the $48.50 resistance level.
The overall size of the bearish pattern suggests that the LTC/USD pair could fall by around $5. A break under the neckline of the pattern, around $43, could see the LTC/USD pair falling towards the $38 area.
Litecoin technical summary
Litecoin technical analysis highlights that multiple triangle patterns are pointing to an explosive directional move in the cryptocurrency.