LTC Dumps Further, The Price Forms A Falling Wedge: Analysis

LTC dumps more of its value since over the last week the price lost more than 25 percent of its value and dropped from $80 to $55. Since then, the walling wedge formed and as we can see in the coming altcoin news, the short-term price action will see a bearish relief and will continue among the wedge parameters.

On the 1-day charts for the LTC/USD pair, we can see a falling wedge forming from the yearly high at  $145 as shown in the previous analysis. Since then, the price levels have dropped to the current market price of $55 and are circling around the 23 percent  Fibonacci level. The 200 EMA has cut through the falling wedge and will not start attracting the prices and will bounce back around $55 towards the resistance of over $60 in the short-term. The volume also started to increase over the past 24 hours and the price levels are getting near to the falling wedge. The RSI clearly got into the oversold territory and the selling pressure is not well in control. The key support level to look out for the price are breaking below the wedge support of $55, $50, $43 and $39 so these key levels will either take profits on shorts or will scale into the long positions.

The 1-hour chart for LTCUSD shows the recent sell-off that caused the LTC dumps and the prices to go even lower so the RSI regained strength as the market price trades went just above the wedge support. Providing a volume increase, the buyers will enter the market around this point and LTC will bounce back towards the $65 before ranging. RSI creating an ascending line and the price action is falling dramatically which is only an indicator of bullish divergence. However, this does not mean that there will be more increases in the upcoming days but merely a continuation of the price action ranging slightly within the wedge.

As we can read in the best cryptocurrency news sites analysis, the volume levels of LTC need to increase by at least twice over the current 24-hour volume in order to sustain an upward movement. In order for the price to actually break upward to the $65 resistance, LTC will have to increase by a minimum of three times the current volume.