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Litecoin Price Analysis: Tug fight between bears and bulls overwhelm LTC at $170

TL;DR Breakdown

  • Litecoin RSI has crossed 30 and is pointing towards the overbought region
  • Bears attempting to sink the price from the neckline of the H&W pattern
  • Litecoin has its higher targets at the 20-day exponential moving average at $277.

Litecoin price analysis: General price analysis

Litecoin RSI has crossed 30 and is pointing towards the overbought region after the coin recovered from a slump that took place in the early trading hours. The coin had just woken up to a good start on the daily chart, a long candlestick shot from yesterday’s close at $166 to today’s opening price of $170. Buyers could not withstand the concentration of sellers around this price point causing the bears to invalidate the uptrend and initiate a pullback to the daily low of $164.

The bottom was within a trough pattern, which has only been corrected on the 4-hour chart, after an upward correction to $172.  Notwithstanding, the tug fight between the bulls and the bears did not end there, Litecoin price movement marked a head-with-shoulder pattern on the 1-hour chart. The head lying at the 24-hour high of $173.35 and the neckline passing through $172. 

Litecoin price movement in the last 24-hours:  Pullback extending all the way to $143

The bears are attempting to sink the price of the coin from the neckline of the head-with-shoulder pattern on the 1-hour chart. If they can break the support at $170, a strong downtrend from this price level could cause correction to the lower consolidation boundary at $143.  On the upper limits of the boundary, lies a temporary resistance preventing the upward correction to $224. 

Source: TradingView

Bulls need to overcome this resistance in order to gain any substantial momentum needed to beat the key psychological hurdle at $200. Failure to wage support from the broader market and activate a demand zone between $175 and $180, Litecoin price could fluctuate below $145 and validate the next bearish support at $131.

Litecoin 4-hour price chart: Falling wedge from the tip of the head

At the time of writing, Litecoin has broken away from the head-with-shoulder pattern and has currently formed a downsloping wedge from the tip of the head. The coin is hovering between $169 and $170, a critical danger zone that could cause a correction to lower supports.   The downside pivots begin at $143 and end at last week’s right shoulder low of $163. Inaction by buyers could cause a bearish pullback to even a lower level such as the May 23 market crash low of $117. 

During this Litecoin price analysis press time, LTC is trading at $169 against the US dollar. 

Source: TradingView

Litecoin price analysis conclusion: Sellers are in control

Litecoin has its higher targets at the 20-day exponential moving average at $277. Will the bulls manage to sustain the price action at levels beyond $200, there is a huge likelihood of facing the 20-day EMA, which is a concentration camp for sellers. However, the price could turn downwards anywhere between $200 – $280, even if the bulls manage to be in control during the weekend. Overall, Litecoin price analysis is bearish, however, a break above $185 is the first indication of an uptrend. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions

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