Once the wedge rises and completes the bearish pennant pattern for Litecoin, the bulls’ hold on trend control will weaken. The looming 7.75% risk for Litecoin warns of a bearish crack in the key 4-hour support trendline.
Despite Bitcoin price’s bullish recovery in highly volatile conditions, Litecoin is struggling to sustain its uptrend.
LTC price is on the verge of a bearish reversal due to lack of support from trading activity. Will Litecoin survive the sudden threat of a 7.75% correction to $58?
Litecoin’s rising wedge turns the tide
On the 4-hour chart, Litecoin’s recovery after last Monday’s bearish crash is forming a V-shaped pattern. This reversal rally has seen a price increase of 26.87% over the past 9 days.
litecoin price chart
However, the bull market is influenced by the bears and rises, leading to an overhead resistance trend line. The recovery recovery has failed to gain trend momentum and reduced volatility has created a wedge-shaped uptrend pattern.
Coupled with a prevailing downtrend, the rising wedge completes a bearish pennant pattern on the 4-hour chart.
Currently, Litecoin is trading at $63.44, revealing a second consecutive bearish candlestick with a higher price rejection from the resistance trendline. Therefore, Litecoin faces the threat of a negative cycle breaking under the rising wedge pattern.
Litecoin target level
The stochastic RSI lines (blue and red) show a bearish crossover in the overbought zone, reflecting bullish depletion.
Additionally, the recovery rally surpassed the 20, 50, and 100 EMAs at $62.14, $61.75, and $63.33, respectively. However, an upcoming negative cycle could stress the 100 EMA and lead to a collapse soon.
Based on the Fibonacci retracement level over the correction phase, the bulls are struggling to break above the 50% Fibonacci level at $64.46. Additionally, bullish dominance at the 100 EMA on the 4-hour chart is at risk as supply pressure builds.
A bearish breakdown below the support trend line that maintains the reversal rally will cause a massive sell-off in Litecoin. If a bearish trend starts, the next support levels will be the 38.20% Fib level at $61.78 and the 23.60% Fib level at $58.46. The Fibonacci retracement reference level is $53.11.
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