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    Litecoin price analysis: strong upside potential

    By Nathan Batchelor

    15:42, 7 October 2020

    Litecoin price analysis

    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.

    Litecoin technical analysis

    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.

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    ETH/USD

    3,064.19 Price
    +3.110% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 6.00

    BTC/USD

    63,407.95 Price
    +4.230% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 106.00

    Gold

    2,380.48 Price
    +0.820% 1D Chg, %
    Long position overnight fee -0.0190%
    Short position overnight fee 0.0108%
    Overnight fee time 21:00 (UTC)
    Spread 0.40

    XRP/USD

    0.51 Price
    +2.340% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 0.01168

    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. 

    Litecoin technical analysis

    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.

    Markets in this article

    LTC/USD
    Litecoin / USD
    81.46 USD
    2.03 +2.560%

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