Litecoin (LTC) Price Needs To Hold This Level To Avoid A Sharp Sell-Off
Litecoin (LTC) has created a double-top pattern right at an important resistance level. It is likely to continue its decline in the near future.
The price of Litecoin (LTC) has risen since hitting a yearly low of $41 in June 2022. It has formed an uptrend structure during this process and reached a yearly high of $105.7 in February 2023.
However, the price was unable to break through the resistance level of $100 and was rejected twice. This action has formed a double-top pattern, which often leads to a trend reversal to the downside.
In addition, the second rejection created a bearish engulfing candle and a bearish divergence in the weekly RSI indicator, another bearish signal.
Therefore, the LTC price is likely to continue to decline towards the important support level at $63.
The daily chart provides a slightly more optimistic outlook. It shows that the LTC price is still above the important support level of the recent uptrend at $85.
However, the price has not seen a strong recovery from this level, indicating a lack of buying pressure at lower levels.
The daily RSI indicator has fallen below 50 and is sloping downwards, a bearish signal.
Therefore, the LTC price is likely to break below this support and decline to the next support level at $75.
Technical signals suggest that the LTC price will continue to decline in the near future. The potential first target of this move is $75 and lower towards $63.
Breaking down below the $85 support level will confirm this possibility.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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