The Litecoin(LTC) price escaped the downtrend-carrying wedge pattern with a massive breakout on March 24th. However, the retest phase is taking longer than expected, questioning the reliability of the bullish breakout. Furthermore, the technical chart displays another price pattern to resolve the uncertainty in the market.
Key points
- The LTC/USDT pair resonating within a symmetrical triangle
- The 20-day EMA assets buyers during the retest phase
- The intraday trading volume in the Litecoin coin is $706.3 Million, indicating a 3.3% gain
Source- Tradingview
Under the influence of RSI divergence, the LTC price rebounded from $98.2 on March 8th. The steady recovery rally rose the altcoin by 35% and managed to pierce the falling wedge pattern that governed most of the last quarter.
The LTC price reverted from the $134 mark to retest the breached resistance trendline. The 20-day EMA aligned with this descending trendline gives additional support to long traders. Even so, the buyers struggle to rise higher and have witnessed a sideways rally since the past week.
The minor consolidation has revealed a symmetrical triangle pattern in the 4-hour time frame. This continuation pattern could resume the bullish rally once the price gives a genuine breakout from the pattern’s resistance trendline.
However, the possibility of a bearish breakdown from the triangle cannot be ignored, and if sellers succeed to pull the price below the descending trendline, the altcoin could tumble 15% to the $100 mark.
Technical indicator
The crucial EMAs(20, 50, 100, and 200) have started to rise again or move sideways, indicating the buyers are gaining control over the bears. So far, the bullish rally has regained the 20-and-50-day EMA, which has flipped to valid support levels.
The bearish crossover of the fast and slow line from the MACD indicator threatens a fake out of the falling wedge pattern. However, the indicator lines are still close, meaning the bulls haven’t given up yet.
- Resistance level- $141 and $153
- Support levels- $116, and $100-$98
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