LTC/USD: Recent Price Behavior
The Litecoin price over the last few sessions has been stabilizing, closing in the green for three consecutive days. It comes after LTC/USD dropped down to the lowest level seen since the 2 April, at the $62 mark. The market bears have been in control since the week commencing 17 June, after the weekly candlestick produced an evening star formation.
LTC/USD suffered heavily in the following weeks, closing in the red for 10 of the last 12 weekly closures. It is the worst run of losses observed since May-June 2018, a real shift in sentiment. All had appeared to be very much promising for the bulls, given the stable path of recovery which commenced in January.
The price pushed up aggressively from depressed levels of $30 at the start of 2019. LTC/USD rallied around 550% up to $146, demonstrating a solid pace of upside momentum. It was the most convincing push north seen since the 2017 bull run. Sellers have forced Litecoin to tumble some 57% after the earlier noted rally.
Deadly Consolidation Periods
There have been a couple of periods of consolidation for Litecoin during the detailed downward trend. Firstly, between 11 July to 6 August, forming a bearish pennant structure. The bears are playing to the textbook and capitalizing with a breakout to the downside. A fresh wave of selling came into play after the range-bound price action.
Another pennant formed from 15 August to 27 August, and sellers were able to force a breach on 28 August. Litecoin has, as earlier mentioned, started to stabilize, finding some firmer ground within a known area of demand. It runs from around $65 down to $55, a zone where the price gathered significant buyer attraction in late April.
Given the recently appeared intentions of a pullback from the bulls, eyes are on a retest of the broken pennant. A retest and rejection of the structure could be very pushing for Litecoin. The resistance is expected to be seen around $72, which is just underneath the technical pattern. It would mark and breakout and retest scenario, something that would likely invite more sellers to the market.
Given the recent bearish pennant pattern breakout, eyes are on a retest of the structure. The resistance could now likely be seen underneath, tracking at $72, as mentioned above. Upon a daily retest and rejection, look for fresh shorts. In terms of targets to the downside; $30-$20 price range, the next major demand zone, should be eyed. LTC/USD last traded down at these levels in February, when the recovery was starting to gain momentum.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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