LTC/USD pennant pattern hints return to $20

Fibo Quantum

  • Litecoin price under grave danger of sliding to $20 if the pennant pattern support is shattered.
  • Litecoin is likely to take up a sideways trading action based on the leveling RSI.

Litecoin price is struggling to hold above $35 on Monday during the European session. Due to the high volatility in the cryptocurrency market, up and down movements are numerous. Earlier, LTC/USD upside action hit a wall at $37.45. On the downside, an intraday low has been formed at $34.55. The price has advanced upward by 1.7% on the day despite the bearish trend and expanding volatility.

The daily chart shows the price trading in the confines of a bearish pennant pattern. The recent gains above $40 formed a weekly high at $44. The pennant resistance stayed in place untested and unlikely to broken in the coming sessions on Monday. On the flip side, LTC is testing the pennant pattern support. If broken, the breakout is likely to trigger a bearish action (selloff) under the $30 support, March support at $25 and test the next support target at $20.

Meanwhile, LTC/USD is trading at $36 at the time of writing. The RSI’s horizontal motion suggests that sideways action could to take center stage. However, selling activities cannot be ignored especially if the 50 SMA continues to close the gap between it and the 200-day SMA. To be on the safe side, support needs to be established above $40 and which will allow the buyers to focus on levels around the psychological $60.

LTC/USD price chart