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The multiple lower price rejection candles reflected the failed attempts from sellers to break the $40 psychological support. However, the price action hovering above the $40 mark shaped into a double bottom pattern, whose breakout indicates a recovery opportunity for Litecoin(LTC) holders.
Key points
- LTC chart shows double bottom pattern breakout in 4-hour time frame
- 20-day EMA bolsters sellers to prevent a successful double-bottom breakout
- The intraday trading volume in the Litecoin coin is $1.45 Billion, indicating a 66.3% gain.
Source- Tradingview
Amid June’s second-week crypto crash, the LTC/USDT pair witnessed aggressive selling represented by seven consecutive daily red candles. This downfall registered a 36% loss and plunged to a low of $40.68.
Thus, the psychological support stalled the ongoing downtrend, and the several lower price rejection candles tapping it shows high demand pressure. As a result, last week, the LTC price hovered above the $40.68 mark, shaped into a double bottom pattern.
On June 19th, the LTC price breached the $50 neckline, indicating the first sign of recovery. This pattern breakout should encourage the altcoin to challenge the overhead resistance of $60.
If the buying pressure persists, this bullish should climb to combine resistance of $100 and 0.236 Fibonacci retracement level.
On a contrary note, if LTC buyers fail to surpass $60, the coin price may consolidate above $40 for a few more sessions.
Technical indicator
The MACD indicator projects a buy signal with a bullish crossover between the fast and slow slope. Moreover, the indicator’s positive divergence for May 12th-and-June 13th low shows rising bullish momentum.
However, since Mid-April, the fast-moving 20-day EMA has offered constant resistance to falling LTC prices. Thus, this dynamic resistance pressurizes the coin price to fail the double bottom breakout.
Thus, interested buyers should wait to see whether the LTC price can sustain above the flipped $50 support.
- Resistance level- $61 and $74.2
- Support levels- $40, and $30
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/litecoin-price-analysis-reversal-pattern-may-push-ltc-price-beyond-60/