With over $4.2 billion in market cap, Litecoin stands tall as the seventh-largest cryptocurrency in the world. The 24-hour volume for LTC exceeds $3.6 billion and has surged 1.16% in the last day and 16.85% in the last seven days.
Hovering at $37 Litecoin shows a potential for a small surge in the short time frame. However, since it is forming a rising wedge, it is bearish in a medium-term scenario.
- The formation of the rising wedge is bearish for Litecoin and a breakout could push the price to $32 and $29 as the local support.
- Before the price breaks out of the pattern, there is a chance for the price to rise by 18% and bounce in the pattern.
Four Hour Litecoin Chart
The recovery from the recent dip is about 81% from the bottom. However, the recovery was in the form of a rising wedge, a bearish pattern. Although the ultimate breakout will be bearish there is a chance for the price to bounce within the pattern providing a good opportunity for scalping.
From where the price is right now, there is a chance to long with an 18% upside while risking 5%. After this surge, there is supposed to be retracement down to the bottom of the wedge, which would be approximately 15% from the top. If the bearish pressure continues, there might be a breakout, causing a dip further down to the next immediate support of $32.27, followed by $29.10.
Further, the wave trend indicator showed two possibilities since it is near the neutral zone. A bounce back from the wave trend indicator would provide for the 18% upside mentioned above. However, if the wave trend indicator continues to breaks below the neutral zone, then the price will directly go to $32 without the 18% upside.
Additionally, the 50-day MA (orange) is sloping downward and is nearing the 200-day MA (blue) suggesting a death cross. Extrapolating these MAs would provide a projected death cross taking place on March 28. A formation of a death cross, as seen on many altcoins, indicates the start of a bearish territory, unless it recovers quickly.
You May Also Read