Litecoin market update: LTC massive correction in the offing
|- Litecoin is pushing its dumping phase to the major support at $70.
- With the falling wedge pattern breakout brewing; a massive correction lies ahead.
Litecoin has lost more than 50% of its value since 2019 high achieved in June this year. A glance at the four-hour chart, we can all jump into the conclusion that LTC is in a dumping phase. However, clearly observing the cryptocurrency, one can tell that Litecoin has not lost its long-term uptrend.
In addition to the long-term uptrend above the long-term trendline, Litecoin declines are almost hitting the reversal point within the falling wedge pattern. The falling wedge pattern is usually interpreted as a trend reversal signal. Therefore, investors should not need to panic and sell as a massive correction is in the offing.
Besides, there have been a couple of failed attempts in the recent past to correct above the 50 Simple Moving Average. The rejection at $90 and $80 further forced Litecoin towards the major support at $70. If LTC bulls manage to pull the above the 50 SMA we could also see a significant retracement towards $100.
Meanwhile, technicals are slightly positive despite the massive correction in the past couple of months. The Moving Average Convergence Divergence (MACD) could soon jump above the mean line into the positive. This will further strengthen the bullish position on the market. Moreover, the stochastic oscillator is out of the oversold, in turn, signaling rising buying power in the coming sessions.
LTC/USD 4-hour chart
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