Litecoin Is Poised For A Major Bullish Reversal: Price Analysis

Litecoin is poised for a major bullish reversal after the cryptocurrency recently broke out of the descending channel on the BTC pair so it seems like the benchmark cryptocurrency will create lower lows and as per the Litecoin news today, the traders speculate that Bitcoins will decline could fuel a pump over the next few days.

Looking at the 1-hour charts for LTC/BTC, we can clearly see a wedge type pattern that is forming as the price levels are re-testing close to the breakout point of the descending channel which will be visible further. The price action will re-test any breakout points before the LTC price levels start to pump. The wedge created a clear descending overhead resistance which in case it gets broken, this will result in a huge increase. The breakout point for the smaller wedge on the charts is standing above the 1-2 percent above the current market price. The short-term decision will be made in the next few days and will be determined by the direction which the price action will break through the current wedge. If the overhead resistance at 0.006900 is broken to the upside, the higher high for the visible range will be expected at the 0.008000 sats. If the price levels crush below the wedge support, another drop to 0.0061000 sats is likely.

Both the 50 EMA and 200 EMA are getting close to each other and will likely cross over in conjunction with a breakout but if the price levels breach either way out of the wedge, this could lead to a crossover of these EMA’s to take place along the increasing or decreasing volume in order to confirm the sustainability of the breakdown. On the 1 day charts for LTC/BTC, the descending channel is clear and it also formed a stemming back to price action back in May so the price levels saw a huge decline over the last few months and Litecoin shed around 50 percent of its value. As per the coming altcoin news, the RSI is now standing in the oversold territory as the 50 EMA sits just 1 or 2 percent above the current market price. The 50 EMA can be used as a resistance point that will sustain bullish momentum so Litecoin is poised to make a huge comeback.