Litecoin Approaches Crucial Long-Term Support Level

Share Article
In Brief
The Trust Project is an international consortium of news organizations building standards of transparency.

The Litecoin price began April 10 on a bullish note, increasing all the way to ₿0.00645. However, a swift downward move followed, and the price has decreased by almost 5% since.

It is possible that the decrease occurred as a result of a similar decrease in the price of Bitcoin. Another possibility is the similarity of the current short-term pattern to one in March, which similarly led to a breakdown.

Cryptocurrency trader and analyst @TradingTank outlined an LTC chart that shows that the price is currently trading inside a symmetrical triangle. This movement has been seen prior, more specifically on March 9, and was followed by a very rapid decrease.

Will the LTC price decrease this time around? If so, where will it find support? Continue reading below if you are interested in finding out.

Daily Time-Frame

The daily time-frame gives a bearish outlook.

The price was just rejected by the ₿0.0064 resistance area and is in the process of creating a bearish engulfing candlestick. The symmetrical triangle outlined in the tweet occurred during the similar bearish engulfing candlestick on March 8, as outlined by the blue arrow. If a similar decrease transpires this time around, the LTC price would be expected to fall to the descending support line, which coincides with the ₿0.0056 support area.

The bearish cross between the 50- and 200-day moving averages (MA) supports the possibility of this decrease occurring.

Litecoin Death Cross
Litecoin Chart By Trading View

Symmetrical Triangle

Since the tweet, the LTC price has already broken down from the triangle. In the short-term, the most likely movement would be a re-test of both the descending resistance line the price has just broken out from and the ₿0.0058 support area. This area could provide some short-term relief before the price heads towards the support area outlined in the previous section.

Litecoin Short-Term MOvement
Litecoin Chart By Trading View

Long-Term Movement

The weekly chart shows that the LTC price is still trading inside a very strong support level that has previously been the catalyst for the initiation of a long-term upward move. In addition, the weekly RSI has generated considerable bullish divergence.

As long as the LTC price does not reach a decisive weekly close below this level, the current decrease is expected to be a short-term occurrence, and the price is expected to eventually begin a long-term upward move.

Litecoin Long-Term
Litecoin Chart By Trading View

To conclude, the LTC price has broken down from its short-term pattern and is expected to continue decreasing until it reaches one of the support areas outlined above. However, the price is still trading inside a long-term support area. As long as it stays above it, the current decrease is not considered a breakdown from the long-term trend. Rather, the price is expected to eventually begin a new, long-term upward move.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Related topics

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Unlock Next-Level Trading Experience — Earn up to 8.88% APY      

Join

Unlock next-level trading on Bybit with your favorite metaverse      

Join

Bybit New Token Listing: Win In-Game NFTs and SIDUS Tokens.      

Win Now!