LTC/USD attempts to escape bearish pennant pattern squashed once again

Fibo Quantum

  • Litecoin price action towards $50 stalls at $44 as broad-based declines take over the crypto market.
  • Litecoin could be staring into another selloff if the pennant pattern support caves in.

Litecoin like many other cryptocurrencies is dealing with an increase in selling activity on Friday. The Asian session has been characterized by retreats from the intraday high. For instance, Litecoin is trading at $43.07 after falling 2.12% from $44.14 (intraday high).

The major task the bulls have is to hold above $40 owing to the struggle they went through this week. The RSI downward movement targets the average (50). This means that Litecoin could continue to slip lower before the indicator finds credible support. The same bearish action is reinforced by the Elliot Wave Oscillator.

On the upside, resistance at $44 is capping movement. Besides, the pennant pattern was tested but not broken. A break above the pennant pattern could pave the way for more gains towards $50. On the flip side, if an uptrend is not sustained and Litecoin drops below the 50 SMA, there is a possibility of a pennant pattern breakdown coming into the picture which could see Litecoin retest $40 and $35 levels respectively.

LTC/USD 2-hour chart
LTC/USD price chart