Litecoin bears take hold despite formation of falling wedge pattern

In a bullish start to the day, Litecoin [LTC] breached its first major resistance at the $55-level, after days of failing to breakout. Litecoin’s price was at $55.83 after posting minor gains of 0.99% over the last 24 hours, at press time. At the time of writing, the cryptocurrency held a market cap of $3.53 billion and a 24-hour trading volume of $2.27 billion.

LTC weekly chart

Source: TradingView

Litecoin’s price followed two downsloping and converging trendlines and exhibited the formation of a falling wedge pattern. This pattern was supported by declining volume on the long-term LTC chart. This was indicative of a potential upward price breakout in the near-term.

The pattern saw the LTC candlesticks falling beyond 50 moving average, which acted as strong support for nearly two months. The untested resistance for the chart was 100 moving average which stood at $97.14, a level not touched by the coin since its second halving event in the first week of August.

Additionally, 21 moving average was above the candlesticks. This however, suggested a bearish pattern for the silver crypto.

Bearishness gains traction

Source: TradingView

The above weekly chart for the cryptocurrency depicted bearish presence in the long-term projection for the coin.

The MACD line was below the signal line, depicting a bearish phase for Litecoin. To top that, the RSI indicator was nearing the oversold zone, which was indicative of high bearish sentiment among buyers.

Conclusion

Despite possible signs of recovery with the formation of the falling wedge pattern, MACD and RSI indicators pulled back the coins’s upward trend.

The post appeared first on AMBCrypto

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