LTC/USD analysis: Will Litecoin break the important $27 support level?
From last week’s high at $38.5 the price of Litecoin has fallen by over 15% and is trading at around $32.8 on FXOpen now.
The downtrend line (purple line) on the hourly chart hasn’t been broken yet, but as the price action is showing higher lows and lower highs we may see a breakout soon. The price action is indicating that the sellers and the buyers are getting closer to each other so that breakout can happen anytime.
As the Minute correction target was met (with a wick) on the horizontal support level at $27.74, the breakout might occur from the upside breaking the downtrend’s resistance line.
Zooming out to the 4-hour chart, the downtrend’s resistance has been broken two times but both times resulted in a straight downfall. We shouldn’t assume that the short-term recovery has started until the LTC/USD pair goes beyond the prior horizontal support level at $33.29.
However, if the price of altcoin continues its downward trajectory there is a strong support at the $27 level. Judging by the price action and the wicks from the upside there are some significant buyers there.
Author
FXOpen Broker Team
FXOpen
