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Litecoin is trading in the red at 51.76 at the time of writing. The price action developed a down-channel pattern, a flag formation. Still, it’s premature to talk about a new leg higher as long as it stays under the downtrend line.
LTC/USD dropped by 5.28% from yesterday’s high of 54.40 to 51.53 today’s low. The altcoin could slip lower if Bitcoin approaches new lows. BTC/USD ended its rebound, so the current drop forces Litecoin to drop.
LTC/USD Hovers Above Support!
LTC/USD is trapped within a flag pattern in the short term. Now, it challenges the 52.00 — 51.15 support area. As you already know from my previous analysis, Litecoin signaled exhausted buyers after its failure to approach and reach the median line (ml) or the downtrend line.
The bias is bearish, LTC/USD could drop deeper as long as it stays below the downtrend line. The weekly S1 (51.16) represents critical support.
A valid breakdown below the S1 could activate more declines toward the weekly S2 (45.74) and down to the lower median line (lml).
Staying above the S1 and making a valid breakout above the downtrend line may signal a potential bullish momentum.
Read more: https://www.instaforex.eu/forex_analysis/282601