Litecoin (CRYPTO: LTC) was trading lower Tuesday as the crypto market was a mixed bag of tickers trading up and down.
Litecoin looks to have fallen out of the pattern it was in, breaking below a key trendline.
Litecoin was down 3.98% at $151.312 at last check Tuesday afternoon.
Litecoin Daily Chart Analysis
- Litecoin looks to have fallen below the higher low trendline in what technical traders call an ascending triangle pattern.
- The $200 level has been an area Litecoin struggles to cross above, and this price level will likely continue to hold as resistance for a time longer. The higher low trendline was holding as support, but as this trendline was broken the crypto could see a bearish push before rebounding.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the crypto looks to have turned bearish.
- Each of these moving averages may hold as a possible area of resistance in the future.
- The Relative Strength Index (RSI) saw a dip lower and moved to 37. This shows that there has been an increased amount of selling pressure moving into the crypto. The crypto is nearing the oversold area starting at 30.
What’s Next For Litecoin?
Bullish traders are looking for Litecoin to bounce back some and start reversing back up. Bulls would like to see the crypto reclaim above the higher low trendline and break above resistance. Bulls want to see sentiment change and for the crypto to get back above the moving averages.
Bearish traders got what they wanted: Litecoin to fall below the higher low trendline. Bears are now looking to see the crypto continue to fall for a time. With some consolidation, the crypto could see a bull flag and a possible further push lower.
Image by Eivind Pedersen from Pixabay
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