Litecoin broke the psychological support level of $50 after the collective cryptocurrency market dip that led to the top coins losing massive value. The silver crypto was trading at $47.67 after a minor surge of 0.11% over the past 24-hours as it struggled to emerge out of the bearish market and registered a market capitalization of $3.03 billion, according to CoinMarketCap. Additionally, the coin recorded a 24-hour trading volume of $3.31 billion.
Litecoin 4-hour Chart:
LTC’s 4-hour chart depicted the formation of a falling wedge pattern with price closing in on two downward sloping trendlines. Following the closure of the pattern in a few days, LTC’s price could potentially witness a bullish breakout. The coin could, however, fall below $45-level before making headway to the positive side.
Further confirming the validity of the pattern was the decline in volume during the same stretch of time as that of falling wedge formation. Moving averages, however, painted a bearish picture for the coin despite hints of the 100 moving average slowly sliding below.
Additionally, MACD indicator also predicted a bearish phase for the coin in the near future. However, MACD line hinted at possible price recovery as it slid closer to the signal line for a bullish crossover. RSI showed negative sentiment among the LTC investors as it was below 50 median, at press time.
The bearish market indication could possibly be a projection of an upcoming decline for the coin followed by a bullish breakout after the closure of falling wedge pattern which could potentially lead the price of LTC to soar to the recently breached $55.
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