Litecoin price analysis: LTC/USD consolidate near $54.80 amid bearish winds
Litecoin price analysis is bearish as LTC/USD depreciates to the $54.80 mark after a bearish run. The bears have taken over the price charts once again and have pushed the prices below the $54 mark. The market is currently facing resistance at $61.50, and if the bears continue to exert their pressure, we could see Litecoin prices decline further to support levels of $54.47. The bulls had tried to enter the market but were unable to sustain the prices above the $61 mark, which resulted in a bearish pullback.
The digital asset has decreased by 10.62 percent in the last 24 hours, and at the time of writing, Litecoin was trading hands at $54.80. The market capitalization of Litecoin is currently $3.8 billion, and the 24-hour trading volume is recorded to be $581,097,108.
LTC/USD 1-day price chart: LTC/USD is facing resistance at $61.50
Litecoin price analysis on the daily timeframe indicates the price movement has seen dynamic bearish engulfing candlesticks form. This bearish reversal pattern is a sign that the market participants are losing confidence in the bullish trend and are now selling their positions. The stop-loss for this trade would be placed just below the $61.50 resistance level, which is also the neckline of the head and shoulders pattern that has been forming on the charts over the last few weeks.
The volatility is increasing for LTC/USD as the Bollinger bands are expanding with the upper band placed at $64.84 and the lower band set at $51.48. This indicates that we could see more volatile price action over the next few trading sessions. The RSI indicator is currently trading in the oversold region, which is a sign that the prices could rebound soon as the sellers might start to take profits off the table. The moving average convergence divergence indicator is currently in the bearish territory, which is a sign that the downward trend could continue in the short term.
LTC/USD 4-hour price chart: Recent developments
On the 4-hour chart, we can see that Litecoin price analysis has formed a bearish descending triangle pattern. The market is currently testing the lower boundary of the pattern and if prices break below this level, we could see a further decline to support levels of $52.
The MACD indicator at the bottom of the chart is currently in bearish territory, as the line blue line is trading below the red line. The RSI indicator is currently at 29.18, which is in the oversold region and indicates that prices could rebound soon as the sellers might start to take profits off the table. The Bollinger bands have started to contract which is a sign that the volatility is decreasing in the market.
Litecoin price analysis conclusion
To sum up, Litecoin price analysis is bearish on all timeframes and LTC/USD could continue to decline towards support levels of $52. Short-term traders could look to enter into sell positions with a stop-loss just above the $61.50 resistance level. The 4-hour and 24-hour timeframe is currently showing a bearish descending triangle pattern which is a sign that prices could continue to decline in the short term.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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