LTCUSD Price Technical Analysis – Another Consolidation Pattern!

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LTCUSD Price Key Highlights 

  • LTCUSD price formed lower highs and higher lows on its 1-hour time frame, consolidating inside another triangle formation.
  • Price could be ready for a breakout in either direction soon as it is approaching the peak of the triangle pattern.

LTCUSD price could determine its longer-term direction based on a convincing breakout from the current triangle pattern.

Downside Break Likely?

Technical indicators seem to be suggesting a downside break, as the 100 SMA is still below the 200 SMA. This shows that the path of least resistance is to the downside, especially since LTCUSD price is coming off a slow downtrend.

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Stochastic is indicating overbought conditions, hinting that sellers could spring to action once the oscillator turns lower. RSI is on middle ground but is pointing down, reflecting a slight bearish bias.

Meanwhile, the average directional index is moving sideways below the middle of its range, indicating that ranging market conditions are still in play. A move past the 50.0 level could show that a trend is forming, pending whichever direction LTCUSD price breaks out.

At the moment, the moving averages also appear to be holding as dynamic inflection points, as they have done so in the past. A candle closing above the 200 SMA or the 3.150 level might provide enough confirmation for an upside breakout while a candle closing below the 3.100 mark might signify a downside break.

A breakout in any direction could lead to a sustained rally or selloff lasting by around 0.300 points, as this is the same height as the triangle pattern. However, the previous triangle breakout failed to gain much traction since profit-taking against USD was a prevalent market theme after the FOMC statement.

Nonetheless, with the Fed gearing up to hike interest rates in December, there is a strong case for further losses for LTCUSD price in favor of dollar strength until the end of the year.

Intraday support level – 3.100

Intraday resistance level – 3.150

Technical Indicators Settings:

  • 100 SMA and 200 SMA
  • Stochastic (8, 3, 3)
  • RSI (14)
  • ADX (14)

Charts from Bitfinex, courtesy of TradingView