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Litecoin price analysis : $50.00 level offers critical support

By Nathan Batchelor

11:28, 24 January 2020

Litecoin price analysis

Litecoin could stage a technical pullback from current levels after the cryptocurrency found strong resistance from the $63.00 level.

Litecoin technical analysis shows that the cryptocurrency could fall back towards the $50.00 level before rallying again.

Litecoin medium-term price trend

Litecoin technical analysis shows that the cryptocurrency recently failed to break above its 200-day moving average, and reversed from the $63.00 level.

The fact that the cryptocurrency failed to find the required buying demand to move price above its 200-day moving average, around the $68.00 level, implies that a strong reversal may be coming.

Litecoin price analysis

The broader cryptocurrency market has also started to lose momentum this week and appears ripe for a deeper technical pullback.

With these factors in mind, a pullback towards the LTC/USD pairs 50 and 20-day moving averages may be on the cards.

The 20-day moving average is located around the $52.00 level, while the 50-day is currently found around the $46.00 level. 

Traders should expect a pullback towards the $50.00 area, and the aforementioned support region over the coming days if bulls fail to anchor the cryptocurrency above the $55.00 level.

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BTC/USD

70,191.40 Price
-0.800% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.64 Price
+0.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,549.45 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Gold

2,233.43 Price
+1.740% 1D Chg, %
Long position overnight fee -0.0188%
Short position overnight fee 0.0106%
Overnight fee time 21:00 (UTC)
Spread 0.80

Litecoin short-term price trend

Litecoin technical analysis over the short term shows that a bearish head-and-shoulders pattern has formed across the lower time frames.

The one-hour time frame shows that the bearish head-and-shoulders pattern is nearly complete, with the neckline of the pattern located around the $55.00 level.

Litecoin price analysis

The size of the pattern indicates that a decline towards the $45.00 level is possible over the short term, although the $50.00 level certainly offers strong support.

Traders should continue to monitor the lower time frames for a sudden decline as the bearish pattern is near completion.

If a decline does occur towards the $50.00 level it may attract dip-buyers who have recently turned bullish towards Litecoin over the medium to longer term.

Litecoin technical summary 

Litecoin technical analysis is indicating that a decline back towards the $50.00 level may be on the horizon. The recent failure around the $63.00 level has created a bearish reversal pattern.

Markets in this article

LTC/USD
Litecoin / USD
103.67 USD
9.41 +10.020%

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