Litecoin Technical Analysis: LTC/USD breakdown infiltrates $40 support as focus shifts to $30

• Litecoin battered bulls scatter into hibernation; selling activity intensifies under $40.
• Oversold conditions in both the long term and short term timeframes suggest  that a reversal is around the corner.

Spot rate: $39.80

Relative change: -0.1632

Percentage change: -0.42%

Trend: Bearish

Volatility: Low

LTC/USD daily chart

Litecoin renewed the bearish momentum on breaching the falling triangle pattern support.

As long as the price remains under $40, the focus will stay at $30 because the bears continually gain confidence.

The prevailing oversold conditions as displayed by the stochastic RSI signal that a reversal is on the way.

LTC/USD 4-hour chart

If Litecoin bulls take advantage of the falling wedge pattern and force a breakout above $45, the potential of recovery above $65 supply zone will increase greatly.

The Stochastic RSI indicator suggests that a recovery is in the offing although delayed breakouts  and lagging movements should be expected.