Litecoin bulls are currently struggling to keep prices above the support line of a bearish chart pattern.
Litecoin ‘s price fell 31% last week as bulls faced a stark reality as the broader market sank into the red. The subsequent rebound saw buyers move closer to the $190 area. However, as the bulls look exhausted, the momentum seems to be shifting to the bears.
If this outlook holds, Litecoin’s price could revisit last week’s lows. At the time of writing, the LTC/USD pair is trading around $172, down about 3.3% over the past 24 hours. Overall, Litecoin’s price has fallen by 25% over the past week.
Litecoin Price Outlook
LTC is trading below a robust resistance area on the 4-hour chart, with the technical outlook for the wedge pointing to a potential decline as bears look to gain ground.
Overall weakness in the Bitcoin market could catalyze LTC’s price vulnerability to further losses, with the outlook likely to strengthen if sellers push prices below $170.
LTC/USD 4-hour chart. Source: TradingView
As can be seen on the chart, LTC/USD is below the 50 simple moving average, which is dipping to suggest a bearish bias. Prices are also capped within a descending triangle pattern to add to the bearish outlook.
The RSI and MACD on the 4-hour time frame are also indicating a potential breakout, with the former dipping below the breakeven point and the latter highlighting a possible bearish crossover as it weakens below the zero line.
If sellers are able to break through the demand zone around $160, LTC/USD could drop to lows of $147 in the coming days.
On the upside, the 4-hour chart shows that the bulls are facing a robust supply zone highlighted by several resistance zones. The first barrier is likely at $178, an area marked by the 23.6% Fibonacci retracement level of the $232 decline to $161.
The downtrend line, the 38.2% Fib level ($188) and the 50 SMA ($192) are the next barriers that bulls are likely to encounter on a quick bounce. If the bulls manage to go higher, a break towards the 50% Fib level ($196) could open a path to the critical $200 area.