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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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US100

21,143.90 Price
+0.160% 1D Chg, %
Long position overnight fee -0.0248%
Short position overnight fee 0.0026%
Overnight fee time 22:00 (UTC)
Spread 1.8

Gold

2,684.48 Price
-0.830% 1D Chg, %
Long position overnight fee -0.0170%
Short position overnight fee 0.0088%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

0.56 Price
-0.860% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

77,025.00 Price
+1.420% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

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
73.22 USD
0.72 +1.000%

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