LTС Kept Some Room for Maneuver… SouthOct 3, 2019
After a fairly strong crash of the LTC/USDT pair from $80 to $50, the sellers decided to take a breather. As a result we are observing a continued consolidation in the ever-contracting price range – for the ninth day in a row LTC is holding in a narrow bracket of $50-57.
On the trading graph we are seeing the pennant pattern, which is a continuation of the trend. This means that the breach of the lower boundary of the pattern and the technical level of support of $50 may trigger a powerful wave of selloffs. The bearish scenario envisions the rate dropping to the next technical level at the $30 mark.
On the other hand, it cannot be excluded that the buyers will try to resume the push for growth to the upper boundary of the descending channel and the mirroring level of resistance of $62. But this scenario remains less likely in the current market mood. We recommend that you do not overlook risk management strategies.
The technical indicator RSI came out of the “oversold” zone, which means that buyers are ready to restart the upwards movement. When the resistance level of $59 will finally be broken, it will be the first signal that the buyers are gearing up to overturn the downward trend.