Litecoin Price Analysis: LTC Maintains Its Flag And Pole Pattern, But Bears Come Knocking
Daily Litecoin LTC Price Forecast
- The upside target for the LTC flag and pole is $165.
- The 4-hour chart shows decreasing price volatility.
Litecoin has been trending horizontally around the $125 zone as it continues its price consolidation. However, how is the price going to behave post-consolidation? Let’s take a look with technical analysis.
LTC Flag and Pole – Much Ado About Nothing?
As we have pointed out in a previous report, the digital silver is on the verge of finishing a flag and pole pattern. It has previously made this pattern successfully as the price rose from $81 to a high of $138. If the present pattern does get fulfilled, then we can expect LTC to reach a high of $165, breaking past the $135 resistance barrier.
Image: LTC/USD daily chart
However, there are a couple of features that show us that this might not be the case. The relative strength index (RSI) in the daily chart is trending along the overbought zone's edge. Secondly, the Bollinger band in the 4-hour chart has started to tighten its squeeze, indicating decreasing price volatility as the price goes through consolidation.
Image: LTC/USD 4-hour chart
Following this consolidation, it seems like the price could have a potentially bearish outbreak as the MACD shows increasing bearish market momentum.
Key Price Levels To Watch For LTC
The downside obstacle for LTC bears lies at the $120 support barrier and the 20-day SMA ($104). A break below that, takes LTC below $100. The upside target is $165, but the %135 resistance could be a potential bother for the bulls. Regardless, the short-term sentiment does look rather bearish.