The LTC price starts on April 10 on a bullish note, rising to ₿0.00645. However, there was a swift downward move soon after, and the price fell nearly 5%.
It is possible that the decline occurred due to the similar decline of Bitcoin. Another possibility is the similarity of the current short-term model to the model in March, which also leads to breakdowns.
Trader TradingTank outlines an LTC chart that shows prices are currently trading inside a symmetrical triangle. This movement has been seen before, more specifically on March 9, and followed by a rapid decline.
Do you like my $ LTC drawing? #Chartwork pic.twitter.com/ZfwXwHZVN2
- Trading Tank (@TradingTank) April 9, 2020
Will LTC prices fall during this period? If it drops, where will it find support? Let's find out.
Daily time frame
The daily time frame outlines a bearish outlook.
The price just turned down at the resistance zone of ,000.0064 and is in the process of creating a bearish engulfing candle. The symmetrical triangle outlined in the tweet occurred during the same bearish plunging candle on March 8, as indicated by the blue arrow. If a similar decline occurs during this period, the LTC price will be expected to fall to the descending support line, coinciding with the support zone of ₿0.0056.
The Bearish cross between the MA 50 and the 200-day moving average supports this probability of a decline.
Triangle symmetrical
Since the tweet, LTC price has broken from the triangle. In the short term, the movement is likely to be a retest of both descending resistance lines, the price just broke out of the support zone of ₿0.0058. This area may provide some short-term relief before prices move to the support area outlined in the previous section.
Long-term movement
The weekly chart shows the LTC price is still trading in a very strong support level that was previously the catalyst for the start of a long-term upward move. In addition, the weekly RSI has created a significant bullish divergence.
Unless the LTC price reaches its decisive weekly close below this level, the current decline is expected to occur shortly, and the price is expected to start a long-term upward move.
In short, the LTC price has broken down from its short-term pattern and is expected to continue to decline until it reaches one of the support areas mentioned above. However, the price is still trading in a long-term support area. As long as it stays above this area, the current decline is not considered a breakdown from the long-term trend. Instead, prices are expected to start a new long-term upward move.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
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