Litecoin formed a double-top pattern on April 18 and started to lose momentum from $103. So far, it lost almost 11% in a week and now finds a solid support level to contain the ongoing selling pressure.
Due to the sudden sell-off that hit the market in mid-April, Litecoin failed to complete a head and shoulder pattern and remained indecisive inside a symmetrical triangle. Unfortunately, the triangle pattern broke down during last week’s surge.
This surge also went through the $84 level that served as major support for almost two months. It found temporal support above the $81 level and stayed calm the following day. This week saw the price through another big sell-off that brought the price to the low of $75.2.
It later saw a three days recovery from that low and halted buying at $82 yesterday. It initiated a drop today and now looks poised to take more lows.
Regardless of the several drawdowns in the past few days, the price is likely to bounce back on the channel’s lower boundary that has been holding price actions for almost a year. However, a bridge at that boundary could trigger a sudden price movement to $70.
In summary, LTC has shed roughly 30% loss since it started to form a double-top (bearish pattern) last month. This pattern could cause a devastating drop if the price slipped off March’s low.
Litecoin’s Key Level To Watch
While several levels have been cracked down since the monthly bearish crossover, Litecoin currently sits above the $78.1 support level, the next sell point to watch is the weekly low of $75.2 and perhaps $74, held near the channel’s lower boundary.
If a rebound occurs at the current price level, LTC would need to first conquer the $81.87 and $84 resistance levels before rising further to $90. The higher resistance level to keep in mind is $94.
Key Resistance Levels: $84, $90, $94
Key Support Levels: $78.1, $74, $70
- Spot Price: $78.6
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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