• Litecoin price continues to illustrate a symmetrical triangle, edging closer to the apex of the pattern.
  • Potential LTC rally threatened by the strategically important 200-day simple moving average (SMA).
  • Low volume endures, offering no insight into the accumulation-distribution profile of the cryptocurrency.

Litecoin price action has been dull since the May 23 low as the area around the 200-day SMA has been a tremendous influence. Unless LTC overcomes the significant resistance constructed by the moving average and the symmetrical triangle’s upper trend line, the digital asset outlook will remain neutral with a bearish bias.

Litecoin price strikes some support, but commitment may be temporary

Litecoin price plummeted 70% from the May 10 high of $413.91 to the May 23 low of $117.58, including a 36% decline on May 19 and a 50% decline for that volatile week. The daily decline was one of the largest going back to 2017, and the weekly loss was by far the largest, taking the daily Relative Strength Index (RSI) to an oversold reading for the first time since March 2020.

Litecoin price action since the May 23 low has been uneventful, offering few opportunities for LTC swing traders. However, the resulting symmetrical triangle dictated by the narrowing price range is inching closer to the pattern’s apex, signaling that the eventual resolution will likely not be carried by impulsiveness or achieve percentage significance.

The measured move for the symmetrical triangle is approximately 47%. An upside resolution of the pattern could carry Litecoin price to the 50% retracement of the May correction at $265.75 and the lower boundary of a previously important ascending channel. Conversely, a bearish resolution would knock LTC down to $83.70, well below the 200-week SMA at $95.00. 

For the keen LTC investor, Litecoin price needs to capture a daily close above the triangle’s upper trend line at $180.60 and the imposing 200-day SMA at $185.73. If achieved, the token is free to test the 38.2% Fibonacci retracement of the May collapse at $230.78 and potentially the 50-day SMA at $237.54. A rally of that stature would offer a 30% profit to investors.

LTC/USD daily chart

LTC/USD daily chart

A close below the lower trend line puts Litecoin price on pace to sweep below the June 8 low of $145.00, and if the market deteriorates, a test of the May 23 low of $117.58, thereby delivering a 25% loss for LTC investors.

Litecoin is the 11th largest cryptocurrency by market capitalization. Still, a cursory review of a Google Search shows limited coverage, which may explain the uneventful LTC price action over the last few weeks. Like Chainlink, LTC investors would benefit from being patient and letting the cryptocurrency close above the earlier mentioned levels. There is no rush to own it today, particularly when the outlook has a bearish bias.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Dogecoin Price Prediction: How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin Price Prediction: How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin price shows signs of consolidation as it produces a potential top formation. While the direction of DOGE is decided, there might be a minor detour before reaching its target.

More Dogecoin News

Solana price action will get boring unless one of these levels is broken

Solana price action will get boring unless one of these levels is broken

Solana price shows a slow takeover of the bears after bulls managed to move the asset higher. Due to Bitcoin’s sudden sell-off, altcoins, including SOL, have taken a major hit.

More Solana News

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing.

More Cryptocurrencies News

Is a 75% decline still possible for the Ethereum Classic price?

Is a 75% decline still possible for the Ethereum Classic price?

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally.

More Ethereum Classic News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP