In the previous Litecoin price technical analysis Something Big is Coming!, we touched upon the triangle pattern formation, a breakdown from which is expected to resume the downtrend that the cryptocurrency is in. Litecoin is currently trading at $2.812, barely higher than its previous observation of $2.800.
As Litecoin tests the patience of the market participants for another day, I would advise them to hold tight as an immediate breakout from the pattern is imminent.
Litecoin Chart Structure – Not much has changed in the chart structure except that the range has contracted even further (see the chart above).
Moving Average Convergence Divergence – The downward Signal Line can be seen closing in on the flat MACD, thereby lifting the Histogram. The Histogram has now advanced to -0.0183 while the MACD maintains itself at -0.3235 and the Signal Line drops to -0.3052.
Momentum –The 10-day Momentum indicator is at -0.6303.
Money Flow Index – The MFI continues to teeter near the oversold boundary with its value of 21.6382.
Relative Strength Index – No change is found in the strength reading which comes in at 31.7346.
A breakout from the triangle pattern, which is a continuation pattern in itself, should see more losses coming for Litecoin. If that does happen, the 200-day SMA of $2.5187 will act as a brief support. My price target for Litecoin for September is $2.000.
But, I must also present a case where I can be proved very wrong. We are seeing a continued upward sustenance in Bitcoin, and if this cryptocurrency breaches $235, expect it to soar to $260. This bullishness will also aid and fuel a strong rise in Litecoin as well.
Overall, I fail to see any strong fundamental indications in both the cryptocurrencies which warrant buying at current levels. But, the speculative force can be very strong in the short term.
As Litecoin tests the patience of the market participants for another day, I would […]