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Litecoin Price Analysis LTC / USD: More Thrust Required

LTC has been saved, but further moves will be difficult.

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  • Litecoin has a bearish short-term trading bias and retains a negative medium-term outlook
  • The four-hour time frame shows that a bearish head and shoulders pattern has been invalidated
  • The daily time frame shows bulls need to rally price towards the $85.00 level to secure the LTC / USD pair’s medium-term prospect

Litecoin received a much-needed reprieve on the cryptocurrency market last week, when the broader market rally saved the LTC / USD pair from a worsening decline below the $50.00 level.

The recent bounce-back in the LTC / USD pair has so far found resistance from just above the $60.00 level, which coincides with the Litecoin’s 50-day moving average.

Last week’s move higher helped negate a bearish head and shoulders pattern on the four-hour time frame, which threatened to sink the cryptocurrency towards the $36.00 level.

SIMETRI Research

The invalidation target of the bearish pattern was also located around the $60.00 level, which is another major reason why the recent rally has stalled around this region.

Going forward, short-term technical analysis is signaling that the LTC / USD pair can advance towards the $70.00 and $75.00 region if price holds above the $60.00 level.

Furthermore, the four-hour time frame shows that the LTC / USD pair is now technically bullish in the short-term for the first time since September 21st this year. Ideally bulls need to defend to the $55.00 level to keep this dynamic in play.

Medium-term analysis suggests the path ahead is slightly more complicated for the LTC / USD pair. Buyers will need to rally the pair towards the $85.00 level to change the negative medium-term bias surrounding the cryptocurrency.

This would mean a rally of around 40 percent is needed from current trading levels. Furthermore, a lack of bullish patterns on the higher time frames is indicating that this may prove tricky without a fundamental catalyst.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Litecoin is bearish, at 19.00 %, while the overall long-term sentiment towards the cryptocurrency is also negative, at 22.00%.

 

LTC H4 Chart October 30 by TradingView
LTC / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame shows that a bullish inverted head and shoulders pattern with an upside target of around $20.00 could start to form if a corrective move back towards the $55.00 level takes place.

Key upcoming resistance for the LTC / USD pair is now located at the $70.00 and $75.00 level. Traders should note that the $85.00 resistance is where the LTC / USD pair’s 200-day moving average is currently located.

 

LTC Daily Chart October 30 by TradingView
LTC / USD Daily Chart by TradingView


Downside Potential

The four-hour time frame is showing that the $55.00 level is providing the strongest form of technical support, prior to the $50.00 level.

The daily time frame illustrates that a sustained drop below the $47.00 level would be extremely negative for the LTC / USD pair, and it may expose a decline towards the $36.00 level.


Summary

Litecoin received a much-needed boost last week, bringing the cryptocurrency away from the $50.00 support level.

Going forward, bulls need to mount a power rally of some 40 percent to secure the LTC / USD pair’s medium-term prospects.

 

Check out our coin guide for an introduction to Litecoin.

We also wrote a DARE (Digital Asset Report and Evaluation) for the project, analyzing the future prospects of the Bitcoin competitor.

Litecoin Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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