Litecoin Price Analysis: Symmetrical Triangle Formation in Progress

Litecoin Price May Tumble, Indicators Suggest
  • Litecoin is forming a symmetrical triangle formed with a crucial supporting trendline and a small term resistance 
  • Declining volumes suggesting a possible reversal  
Tradingview

Litecoin price has formed a symmetrical triangle and is headed for hiatus that may decline the price by $196(61.8% Fibonacci level) or $169(50% Fibonacci level). The volume analysis indicates weakness in the trend, making the rice touchdown at $200(61.8% Fibonacci level) and $180(50% Fibonacci level). The price range volume indicates increasing selling volumes over buying volumes, which could turn the upcoming sessions’ trend. The market cap and 24-hour volumes are $14,039,516,731 and $4,832,985,504 respectively. 

Litecoin Price May Tumble, Indicators Suggest 

Tradingview

Left Image: The daily time frame charts show that the price has received a rejection from the R-1 pivot level, which pushed the coin down by 3-5%. The price is likely to plunge to $175, i.e., the R-1 pivot level. 

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Right Image: The price has tested the support at 10-EMA in today’s session. However, the price didn’t incline considerably, which raises concern about whether bulls will exit the coin for the short term. The 10-EMA, 20-EMA, 50-EMA, and 200-EMA are acting as support at $204, $200, $183, and $124. 

The Bollinger bands are contracting due to the decline in prices, which suggests that the volatility is likely to decline and may cause reversal if the price breaches the median – 10-EMA at $205. The bands have restricted the prices between $230 and $180.

RSI has made a lower high, suggesting weakness in the trend and may decline until 50-levels, which is the indicator’s immediate support.

MACD(*,21,5) is about to flash a sell signal that could trigger a short-term bear rally until the anticipated support zone is $175-$180.

Conclusion: 

Litecoin price has made a symmetrical triangle after receiving resistance at 78.6% retracement/R-2 pivot levels and may decline till 50% retracement or R-1 pivot at $175-$180. The volumes have declined with contracting Bollinger bands, which has raised the chance of reversal. 

Support: $205(10-EMA), $200(20-EMA), $180(50-EMA, R-1 Level or 50% retracement) 

Resistance: $225(R-2 Pivot or 78.65 Fibonacci levels) and $245-$250(Last Top) 

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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