- Litecoin price has formed a bearish flag pattern on the 4H chart.
- It has then formed a double-top pattern on the daily chart.
- This is a signal that the coin will continue falling in the near term.
Litecoin price drifted upwards on Thursday even as other cryptocurrencies retreated. LTC price jumped to a high of $81.83, which was a few points above this month’s low of $75. On the other hand, Bitcoin remains below $28,000 while most altcoins are deeply in the red. In this article, we will assess whether to buy Litecoin at the current prices.
It is unclear why other cryptocurrency prices retreated on Thursday. But a closer look shows that other assets like American stocks have pulled back while the dollar index has jumped. Further, regional bank stocks like PacWest and Western Alliance also plunged by double-digits.
Litecoin price 4H chart analysis
Turning to the 4H chart, we see that Litecoin price has been falling after it hit the key resistance point at $103.07 in April. This means that the coin has fallen by more than 21%, meaning it has moved into a bear market. At the same time, the sell-off is being supported by the 50-period exponential moving average, which is a sign that bears are in control.
LTC price has also formed a bearish flag pattern, which is shown in red. This pattern usually results in a bearish breakout. Therefore, there is a possibility that the coin will have a bearish breakout in the coming days. If this happens, the next level to watch will be at $70, which is about 13% below the current level.
This bearish view will be invalidated if the price moves above the important resistance point at $84.50, which is was the lowest point on April 22. Such a move will invalidate the bearish pennant and signal that there are still more buyers in the market.
LTC price forecast
Turning to the daily chart, we see that the situation is looking much worse for Litecoin. The coin has formed a double-top pattern at $102.83. The neckline of this pattern is at $66.67. In price action analysis, this pattern is one of the most bearish in the market. Litecoin price has also crossed the 50-day moving average while the Relative Strength Index (RSI) is nearing the oversold level.
Therefore, in the medium term, there is a likelihood that LTC price will have a bearish breakout, with the initial support level being at $66.67, which is ~17% below the current level. A break below that level will open the possibility of the coin falling to $50.
