Litecoin Reaches Critical Point: A Technical Analysis

Litecoin LTC/USD is trading lower Wednesday as the cryptocurrency market is seeing a red day.

Litecoin is trading lower with other popular cryptocurrencies such as Bitcoin BTC/USD and Ethereum ETH/USD. Litecoin has cracked below a higher low trendline support in what traders call an ascending triangle pattern.

Litecoin is down 6.82% at $137.63 over 24 hours. 

See Related: Is LItecoin In Trouble?

Litecoin Daily Chart Analysis

• The crypto looked to have broken below support in an ascending triangle pattern. The crypto was showing resistance near the $200 level and support near the higher low trendline. Now, this trendline may become an area of resistance in the future if the price can hold below it.
• 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 trading sideways below the middle line for the past couple of months and sits at 40 now. This shows there are slightly more sellers in the crypto than there are buyers.

What’s Next For Litecoin?

After falling below the pattern support, Litecoin made a strong bearish move and is now consolidating. The next move it makes will be a key indicator of where the crypto could be headed next. Bullish traders want to see the crypto be able to recover the $200 and the moving averages. Bears are looking to see the crypto continue to drop lower and be able to hold below the moving averages.