Litecoin (CRYPTO: LTC) shares are trading slightly lower Thursday as the cryptocurrency market is seeing a relatively flat day. Litecoin looks to have fallen below a key support level and could be beginning a downtrend if unable to cross back above the support level.
Litecoin was down 1.80% at $151.28 Thursday afternoon at publication.
See Related: Why The Dogecoin, Litecoin Downturn Could Slam This Penny Stock Crypto Miner
Litecoin Daily Chart Analysis
- The crypto looked to have broken out of an ascending triangle pattern but recently fell below the resistance level from the pattern as well as the higher low trendline. This shows bears have taken over the crypto and are pushing it lower.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been fading lower since mid-November and now sits at 37. This shows the crypto is seeing much more selling pressure than buying pressure. If the RSI falls below the 30 mark it will enter into the oversold area and see a heavy amount of sellers.
What’s Next For Litecoin?
Sellers came into the crypto and it fell below the higher low trendline showing that higher lows were unable to be formed anymore. This shows that the bullish trend is no longer valid unless the price can cross back above this level soon. The cross below the moving averages and this trendline show that bears have taken control of the crypto. Bears want to see the price continue to fall, while bulls are looking for a bounce-back above the support level.
Photo: Michael Fortsch via Unsplash
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