Litecoin Technical Analysis: Brief $6 rally saves LTC/USD from plunging to $20

• Litecoin holds on to the brief gains posted on Tuesday as $40 stands out as key support.
• The price nears a breakout from the six months-long falling wedge pattern.

Spot rate: $40.11

Relative Change: -0.76

Percentage change: -1.87%

Trend: Bearish  

Volatility: High

LTC/USD daily chart

Litecoin nurtures an improving technical picture as the RSI grinds towards the average (50).

The moving averages; 100 SMA and 50 SMA cap movement north at $44.17 and $51.45, respectively.

LTC/USD 4-hour chart

Brief recovery breaks above $40.00 hurdle but fails to rise above the descending trendline resistance.

In the short term, the 100 SMA provides support for Litecoin in a bid to ensure that losses below $40 are averted.

LTC/USD 1-hour chart

The Bollinger Band upper curve resistance puts a stop to the recovery as bears take over control, pushing Litecoin against $40 short term support.