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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

20,800.30 Price
+0.440% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 7.0

XRP/USD

1.37 Price
-10.620% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

ETH/USD

3,330.61 Price
-3.360% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

BTC/USD

96,658.45 Price
-2.010% 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
94.97 USD
-6.16 -6.170%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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