Litecoin (LTC) Price Watch: Is That a Double Bottom?
Litecoin Price Key Highlights
Litecoin price could be done with its drop as a double bottom may be forming on the 4-hour chart.
Technical indicators are showing mixed signals at the moment as selling pressure remains present.
A break past the neckline at $70 could lead to a rally that’s the same height as the chart formation.
Litecoin could be in for a reversal from its slide as a double bottom can be seen on its 4-hour chart, awaiting confirmation.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to suggest that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap is pretty narrow so a bearish crossover might be possible while these moving averages also hold as dynamic resistance.
In that case, another test of support around the $48 level could take place. Stronger selling pressure could even spur a break below this level and a continuation of the longer-term downtrend. A break past the moving averages could pave the way for a test of $70.
This would make the double bottom around $22 in height, which suggests that confirmation could spur a rally of the same height. However, RSI is turning south from the overbought zone to signal a return in bearish pressure. Similarly stochastic is heading south so a pickup in selling pressure is due.
LTCUSD Chart from TradingView
Cryptocurrencies seem off to a positive start for the week, though, as there have been no negative reports over the weekend. In fact, the previous trading week ended on a good note with a report suggesting that blockchain industries could add $1 trillion to global trade over the next ten years. With that, market participants appear to be turning their attention back to institutional interest and more M&A activity in the space.
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