Litecoin Price Analysis: Litecoin reverses from 20-day EMA immediately into the weekend

TL;DR Breakdown

• Today’s Litecoin price daily chart is bearish
• Litecoin pulled back from the 20-day exponential moving average ($176) 
• The 50-day SMA lies at $241

Litecoin Price Analysis: General price overview

Litecoin pulled back from the 20-day exponential moving average ($176) yesternight and corrected all the way to $169 by the close of Friday’s daily chart. This gave the bears an upper hand in controlling the Litecoin price action, causing a strong downswing to a daily low on the 4-hour chart. This gives the impression of sellers in action above $170, putting together a strong defense against any uptrend towards the 20-day EMA. 

Today’s daily chart is bearish, a downsloping trendline has already formed on the 4-hour chart and is targeting the first major support at $149. Breaking below the $169 first key resistance activated a downtrend that is likely to engulf the market throughout the weekend. Approaching Friday, Litecoin formed a symmetrical triangle – a signal for indecision between bulls and bears. However, the coin broke from this pattern in the last hours of yesterday’s trading session after buyers gave in to increasing selling pressure. 

Litecoin price movement in the last 24-hours: Greenlight at $170

Litecoin has been holding on to a bearish structure starting from the first major support at $149, after last week’s rebound from the $145 price level. If Litecoin can manage to adjust its movement towards the upper boundaries of the descending triangle on the 5-day chart, the further bullish movement might complete a continuation towards $170 and signal a bull flag. But the situation at the moment demands more support from the broader market to help beat a concentration of sellers between $162 and $164. 

LTC opened the daily chart at $163 before slumping into a trough supported by the daily low at $154. The opening market price is also the daily high, further indicating an overall bearish momentum for Litecoin. The daily range is moderate with a difference of at least 10 points suggesting moderate volatility. 

Litecoin 4-hour price chart: Flattening EMA

At the time of writing, Litecoin is trading at $157 against the US dollar. On the 4-hour chart, the 20-day EMA is flattening out as the bulls attempt to recover from a cup-with-handle structure. A flattening moving average indicates a drop in selling numbers. If the bulls can manage a strong momentum, the first key resistance ($169) will be a reality and this could even trigger a further uptrend to the 62 percent FIB extension level at $174. 

Litecoin price analysis conclusion: Major target at $241

For now, the 50-day simple moving average is the major target for a bullish rally to hold. The 50-day SMA lies at $241, such a high target with numerous resistance levels underneath. Litecoin price action demands a lot of buyer volumes to drive the price to this point.

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Source: https://www.cryptopolitan.com/litecoin-price-analysis-2021-06-12/