Litecoin price analysis: LTC/USD about-turns at $140 – Double-top pattern in action
|- Litecoin recovery hits a dead end at $140 but the downside is strongly supported.
- The formation of a double-top pattern on the 1-h chart is further pulling the price towards the short-term $136 support.
Litecoin price is facing various technical scenarios on Wednesday. Initially, there was a break from the falling wedge pattern after the gains from the recent Bitcoin driven surge hit a hurdle at $140. LTC/USD tested the levels under $130 and formed a low at $128.95.
The breakout from the wedge pattern further pushed the reversal above the 50 Simple Moving Average (SMA) 1-h as well as the 100 SMA 1-h. LTC/USD gains tested $140 level for the second time four days. The sellers’ congestion at $140 barricaded the area stopping movements north.
Consequently, the formation of a double-top pattern on the 1-h chart is further pulling the price towards the short-term $136 support. But before that, the trendline will try to stop the declines. The 100 SMA currently at $135.25 will offer support as well with the 50 SMA 1-h coming in handy at $134. Litecoin also enjoys strong support at $1.0 and the region between $125-$128.
LTC/USD 1-h chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.