Litecoin (LTC) Technical Analysis: Litecoin Summit Over, Gemini Support, Lite.IM Now Live, When Lambo?

The hugely successful Litecoin Summit is now officially over but surprisingly the project is still battling to shake off bearish traders. Despite a host of new announcements, including the highly anticipated launch of Lite.IM and support from the Winklevoss Twins’ Gemini crypto exchange, LTC ended yesterday with a 4.55% loss.

In the last 24hrs the crypto market has fallen back below $200 billion and the headliner, Bitcoin (BTC), is also flagging to stay in the $6,200-$6,300 range. It is not uncommon for Litecoin’s value to depend largely on Bitcoin’s market performance at any given time and right now this is the most likely cause of LTC’s inhibited progress.

Diving into the LTC/BTC analysis featured in the video above, we can see that Litecoin was actually looking pretty bullish, with a promising pennant reaching consolidation. However, strong efforts had been made in earlier trading to bring LTC’s value down, and a few hours after the video analysis was posted, LTC broke bearish through the pennant support and found itself down at $50. This could also be attributed to Bitcoin’s sudden drop below $6,300 on Monday, after the global crypto market began shedding capital.

Catching up with LTC now, we can see that the general trend is still travelling sideways, but the asset has fallen through the top support at $53 and is now inside the support region, with the next foothold way down at $45.

Looking at the indicators, we can see straight away that the recent fall out of the pennant was a temporary market movement, where the asset dipped into the oversold region on the RSI but then quickly recovered back into the index channel. On the CMF, the asset is still uptrending overall, but a drop below the zero line will be a good early indication of a bearish reversal if selling pressure starts to pick up again.

On the Ichimoku indicator, however, we have an early bear warning, where the candles have fallen through the supporting kumo accompanied by a bearish T/K crossing. It is worth mentioning though that the candles are still within range of the kumo and could still pass back through it if short-term buying momentum returns over the next week. This will need to be carefully observed to see whether candles close below this cloud or start to climb back through it.

Revising the earlier analysis, it is also worth noting that the recent drop further solidifies the downtrending resistance of a falling wedge patterns that encompasses the broader price action.

Now that LTC is tracking closely to this resistance, we can see that there will be further pressure working against bullish traders to overcome this level. It is a positive sign, however, that LTC is tracking sideways and hopefully the current support channel (green) will prop the asset up long enough to allow buyers to exit out of this downtrending pattern early.

Alternatively, we may see Litecoin continue further down towards the consolidation point before bullishly reversing, which these patterns are known for doing.

For now, determining price targets will be difficult as it will depend heavily on Bitcoin’s movements over the next week. Instead, we’ll take a look at the key resistance and support areas going forward.

Key Support: $46

Key Resistance: Downtrending line could be retested anywhere between $55 and $47.