- Litecoin struggles with the resistance at $40; the path of least resistance remains to the south.
- $22 support is likely the bottom Litecoin is hunting for; it could trigger the falling wedge pattern breakout targeting $100.
Litecoin pushed against key support zones to the extent of testing $35.00. The break below the $40 support increased the volatility on the market. However, the immediate reversal was unable to reclaim the support and forced LTC to stay under $40.
The daily chart shows Litecoin narrowing towards $20 within a falling wedge pattern. The pattern in question has been developing since June highs around $146. The narrowing trend also means that Litecoin is yet to bottom. Unfortunately, there is a high potential that the price will have to revisit 2018 low in the zone around $22 before enacting a significant reversal above $100.
The Relative Strength Index, currently at 36 is lethargic in the upward motion. In the event, the indicator slides back into the oversold, LTC/USD could break down below $35 and even test $30. Besides, the gap between the 50 SMA and the 200 SMA shows the bears having control over the cryptoasset. The best move for the bulls is to retake $40 support and push LTC towards $50 in the near term.