Litecoin News: The Relative Strength Index on Litecoin charts has crossed the 30 level. This indicates an overbought zone after the drop in the early hours. The coin got off to a good start on the daily chart, hitting a long candlestick from yesterday’s close of $166 to today’s opening price of $170. Buyers were unable to withstand the concentration of sellers around this price point, causing the bears to invalidate the uptrend and begin a pullback to the daily low of $164.
The bottom was just inside a corrected bottom formation on the 4-hour chart after an upside correction to $172. The contention between bulls and bears did not end there, Litecoin price action formed a shoulder to shoulder pattern on the 1-hour chart. The head zone is at $173.35, the 24-hour peak. The neckline is $172.
The bears are trying to lower the price of the coin from the neckline of the shoulder-to-shoulder formation on the 1-hour chart. If they can break the support at $170, a strong bearish break from this price level could result in a correction at the lower consolidation border at $143. At the upper limits of the border, there is a temporary resistance that prevents an upside correction to $224.
The bulls need to overcome this resistance to gain any significant momentum needed to surpass $200, a key psychological hurdle. Lacking support from the market and not activating a demand zone between $175 and $180, Litecoin price could fluctuate below $145 and confirm the next bearish support at $131.
At the time of this writing, Litecoin has broken out of its shoulder-to-shoulder pattern, currently forming a downward sloping wedge from the tip of the head. Entering a critical danger zone, the cryptocurrency is hovering between $169 and $170. Downside pivots start at $143 and end at last week’s right shoulder low at $163. Buyers’ inaction could lead to a downtrend even lower to $117, the low of the May 23 market crash.
At the time of writing this Litecoin price analysis, LTC is trading at $169 against the US dollar.