• Litecoin price confirms a 13.52% symmetrical triangle breakout.
  • LTC may collect more liquidity on its path to $46.64, ahead of a significant recovery to $100.
  • Overhead pressure continues to build among investors who bought LTC at $52.60.

Litecoin price is exploring downhill levels beneath $50.00 after several weeks of mundane consolidation. As discussed last week, the coin could close the day around $46.64 if sellers capitalize on a symmetrical triangle breakout.

Litecoin price hunt for the bottom persists

Litecoin price settled above support at $50.00 in the middle of September in the wake of the prior rejection from $67.50. Bulls moved swiftly to regain the lost ground, but overhead pressure at $58.00 curtailed their progress. The tug of war between the bulls and bears continued for most of October’s first two weeks, representing itself on the chart as a symmetrical triangle pattern.

As covered in last week’s analysis, a breakout from the triangle pattern forecasted Litecoin price sliding to $46.64. A break below the triangle’s lower trend line confirmed the expected breakout on Monday, leaving LTC price vulnerable to bearish advances.

LTC/USD 12-hour chart

LTC/USD 12-hour chart

Litecoin price exchanges hands at $48.88 after a 7.02% drop from the triangle’s breakout point. The Litecoin price technical outlook hints at further declines to complete the 13.52% target generated from the triangle’s breakout point. A 12-hour to a daily close above $50.00, however, would invalidate potential losses to $46.64.

The MACD (Moving Average Convergence Divergence) indicator adds credence to the pessimistic narrative. A sell signal presented on Monday after the 12-day EMA (Exponential Moving Average) appeared to be calling more sellers into the market. As long as the MACD stays below the mean line (MACD) and on a downward slope, Litecoin price will have a tendency to decline to lower levels.

As per insights from IntoTheBlock’s IOMAP chart, an immediate recovery for Litecoin price remains a pipe dream. The approximately 400,500 addresses that purchased LTC coins around $52.60 might consider selling at that level as Litecoin price tries to recover, in an attempt to breakeven on their losing positions, and as a result adding supply and dampening the uptrend. This battle between buyers and sellers will likely continue to $60.00 based on the IOMAP investor cohorts at $53.97, $55.43 and $57.02.

Litecoin IOMAP chart

Litecoin IOMAP chart

On the other hand, the IOMAP model reveals that Litecoin price lacks firm support to mitigate the ongoing retracement, suggesting it may continue lower.

Yet for all that Litecoin price’s move to $46.64 might be a blessing in disguise for those still stubbornly bullish as it could give buyers time to collect more liquidity before attacking higher levels toward $100.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Is there more upside to Dogecoin-killer Shiba Inu’s rally after 100% gain in 90 days?

Is there more upside to Dogecoin-killer Shiba Inu’s rally after 100% gain in 90 days?

Shiba Inu token burn rate climbed by 67% since February 4. A total of 13,518,918 SHIB tokens have been burned according to the Shibburn portal. The meme coin gained 100% against competitor Dogecoin in the last 90 days. 

More Shiba Inu News

Why Bitcoin is still in a bear market and what this means for BTC price?

Why Bitcoin is still in a bear market and what this means for BTC price?

Bitcoin is currently in a bear market, according to analysts despite the massive rally of January. The selling pressure on the asset has reduced with miner inflow to exchanges declining to multi-year lows. 

More Bitcoin News

Here's what the new Dogecoin fork means for DOGE hodlers

Here's what the new Dogecoin fork means for DOGE hodlers

EthereumFair, the project that brands itself as the world’s first Ethereum fork is in talks with the Dogecoin community for a fork. The team proposes retaining DOGE’s consensus algorithm and changing the mining algorithm to make it compatible with Ethereum graphics card mining. 

More Dogecoin News

What to expect from US CFTC’s landmark crypto enforcement in 2023

What to expect from US CFTC’s landmark crypto enforcement in 2023

United States Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has said he will be continuing efforts for the agency to regulate cryptocurrencies, that is non-security tokens. In his remarks at the American Bar Association, Behnam said that the CFTC is well positioned to address regulatory gaps in crypto. 

More Crypto News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP