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Litecoin Price Analysis LTC / USD: Strict Confinement

LTC's price is trapped between its moving averages.

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  • Litecoin is trading in its narrowest 21-day range since March this year
  • Short-term technical analysis shows a potential bullish pattern taking shape
  • The daily time frame highlights that if a rally fails to materialize then the LTC / USD pair could drop towards the $45.00 level

Litecoin is still trapped within an incredibly narrow trading range, after a bullish rally failed to materialize. In fact, the cryptocurrency is trading in its tightest three-week trading band since March this year. An early week rally towards the $73.00 level failed to generate sustainable gains, with the LTC / USD pair soon slipping back under the $70.00 level.

The longer that the LTC / USD pair fails to rally from current trading levels, the greater the chance that we may see the cryptocurrency falling to a new multi-month trading low. A break below the $60.00 support level may provoke an even deeper decline towards the $45.00 level.

In percentage terms, the LTC / USD pair could lose a further twenty-five percent on its value if it does breach the multi-monthly trading low, around the $60.00 level and a decline towards the $45.00 level.

SIMETRI Research

Short-term technical analysis shows that the $68.00 and $65.00 levels are currently the strongest forms of technical support before the $60.00 level starts to come back into focus.

Short-term technical analysis shows a glimmer of hope for LTC / USD bulls, as the four-hour time frame is highlighting a bullish inverted head and shoulders pattern that could form if buyers can rally the cryptocurrency towards the $80.00 resistance level.

The LTC / USD pair’s 200-period moving average on the four-hour time, which is located around the current monthly trading high, is currently the main technical resistance area blocking a rally towards the $80.00 level.

If the bullish pattern is formed around the $80.00 level, the upside projection of the pattern is around $20.00, which would then take the fifth largest cryptocurrency by cap back into triple-digit territory.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Litecoin is neutral, at 48.00 %, while the overall long-term sentiment towards the cryptocurrency is considerably more bearish, at 28.00%.

 

LTC H4 Chart September 13 by TradingView
LTC / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame is showing that the $73.00 level is the main technical barrier before the near-term bullish target, at $80.00 starts to come into focus.

The daily time frame highlights that the LTC / USD pair’s 50-day moving average, at the $80.00 level, is a key technical region which bulls need to break. The cryptocurrency’s 200-day moving average is located at the $87.00 level, and a move above this key technical metric should encourage further LTC / USD buying.

 

LTC Daily Chart September 13 by TradingView
LTC / USD Daily Chart by TradingView


Downside Potential

The four-hour time frame is showing that the LTC / USD pair is currently trapped between the 50-period and 200-period moving averages. The moving averages effectively highlight the next technical breakout zone, between the $68.00 and $73.00 levels.

The daily time frame is showing that the LTC / USD pair is trading below its major long-term moving average, with a bearish death cross currently underway on daily time frame.


Summary

Litecoin will soon need to stage a meaningful short-term rally or the cryptocurrency could see a worrying decline back towards $60.00 support level.

Both time frames highlight the $80.00 level as particularly important if the LTC / USD pair can find short-term buying interest above the $73.00 resistance level.

 

Check out our coin guide for an introduction to Litecoin.

We also wrote a DARE 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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