Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be taken as funding recommendation
Unable to discover a clear course regardless of Bitcoin’s ascent, Litecoin remained gridlocked inside a descending triangle setup. Whereas the sample usually observes a breakdown, LTC’s consequence just isn’t but clear.
The altcoin was buying and selling above its near-term SMAs and its indicators took a impartial method. In an effort to pinpoint LTC’s trajectory, the value wants to shut above or beneath sure key areas on the chart.
On the time of writing, Litecoin was buying and selling at $195, up by 0.6% during the last 24 hours.
Litecoin 4-hour Chart
Supply: LTC/USD. TradingView
Three successive decrease highs at $215, $200, and $197 highlighted a downtrend for LTC after a 16% run-up was noticed final week. When mixed with the 2 lows fashioned on the 50% Fibonacci Retracement degree, a descending triangle setup appeared on the 4-hour timeframe.
Ought to LTC reduce beneath the confluence of its 20 (purple) and 50 (yellow) Easy Shifting Common traces, one other assault on the baseline might be anticipated. From there, a near-term pullback of 6.5%-8% may come to mild in case LTC weakens beneath the $188-mark.
In the meantime, an in depth above the higher sloping trendlines and 61.8% Fibonacci degree would arrange an upwards breakout from the sample. The following Fibonacci zone at $217 might be challenged instantly, supplied the broader market stays threat on.
Reasoning
Now, the 4-hour RSI appeared to be traversing inside a down-channel and a more recent low may type on the decrease trendline, beneath the 50-mark. Primarily based on this consequence, there’s a probability that LTC would break south from its triangle. The RSI would wish to maneuver above its higher trendline to invalidate this outlook.
Then again, the Superior Oscillator offered a impartial bias after buying and selling near its half-line. Regardless that the MACD pictured related actions, increased peaks alongside the histogram have been encouraging for bullish merchants.
Conclusion
There appeared to be legitimate arguments to help a breakout in both course from a descending triangle. To play it secure, merchants ought to await LTC to shut above or beneath key ranges earlier than taking over positions out there.
Bullish merchants can lengthy as soon as LTC closes above the 61.8% Fibonacci degree whereas short-sellers can enter the market as soon as LTC closes beneath the 50% Fibonacci degree.
