- Litecoin continues to struggle and it is clearly visible if we look at a higher time frame chart.
- There is a major contracting triangle pattern forming on the daily chart (data feed via Kraken), which is calling for a crucial break in the near term.
- The price is below the 100-day simple moving average, which may encourage sellers to take it further down.
Litecoin price continued to weaken this past week, and now it looks like if the bulls fail once again, then a move towards $2.50 is likely.
Litecoin Price – Wait for a break?
Litecoin has been traded at a lower price this past week and tested the $2.90 support area where the buyers found hard to prevent the downside move. It is important to note that the $3.00-2.90 area acted as a major support earlier, and it holds a lot of importance for the price in the days to come. There is clearly a monster contracting triangle pattern forming on the daily chart (data feed via Kraken), which can be seen as a break out pattern the coming weeks.
The most important point that one should keep in mind is the fact that the price is below the 100-day simple moving average, suggesting buyers are finding it really hard to take the price higher. Moreover, the 23.6% Fib retracement level of the last drop from the $5.00 high to $2.90 low is positioned around the triangle resistance area.
So, the 100-day simple moving average is an initial hurdle for the bulls, followed by the triangle resistance area. On the downside, the most important support is near $2.90-3.00.
Looking at the indicators:
Daily MACD – The MACD is in the bearish zone, and there seems no chance of a change in the slope.
Daily RSI – The RSI is below the 50 level, which is a bearish sign.
Intraday Support Level– $3.00
Intraday Resistance Level – $3.45
Charts from Kraken; hosted by Trading View