- Litecoin is likely to resume the downtrend due to the formation of a falling wedge pattern.
- The RSI’s gradual slope is continuously persuading the sellers to tighten their grip.
The market is back in the red, however, this is after an impressive upward move on Wednesday. Litecoin, for instance, pushed against all odds to step above the critical $60 level. A weekly high was formed at $60.16 and lack of energy to sustain higher growth culminated in an ongoing retreat.
The crypto has a current market value of $58.88 and is dancing within the apex of a rising wedge pattern. In the event this reversal pattern hits maturity, Litecoin is likely to disintegrate towards $50.
Consequently, the immense distribution of support levels including the Simple Moving Average (SMAs) means that the bulls will have a better chance of stopping the correction. The 100 SMA on the one-hour chart is in line to offer support at $56.37 while the 50 SMA currently stands $56.61.
If the Relative Strength Index (RSI) proceeds towards the oversold, Litecoin bears will increase their entries. This compelling move could thrust lTC though the tentative support areas at $55.00, $53.00 and $50.00.
LTC/USD hourly chart