LTC/USD technical analysis: confined to a wedge – higher chance of breaking higher


Litecoin has been shaken by the crypto-crash that currencies experienced last week: it plunged after the big rally. Yet like bitcoin, the long Christmas weekend gave LTC some time to rest, consolidate and look for a new direction.

Looking at the charts, it still hasn’t decided on a new technical direction. The digital currency is confined to a narrowing triangle or wedge. This narrowing range does not narrow forever. Eventually, the price takes a specific direction and goes all in.

LTC/USD wedge

Here is how it looks on the chart. A description follows:

Uptrend resistance begins from the all-time high of $370.50 that was seen on December. From there, we have a series of higher lows: 360, 340, 325, 303, 290, and most recently, 280 dollars, which is already a double top.

The fact that we do not have another lower high is a bullish sign. The bleeding may have stopped and perhaps coin could make a break above $280.

Looking at uptrend support, the crash point of $155 that was seen on Friday is clearly the low point. Another swing low at 176 was recorded on the same day and since then we have a string of higher lows that form this wedge. Contrary to the downtrend resistance line, we do not have any lower lows nor any double bottom. LTC/USD finds it harder to fall back to lower ground.

All in all, the technical lines point to a potential explosion in the price, and there seems to be more room to the upside than to the downside.

More: Litecoin, heavy crash: technical levels to watch on LTC/USD

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.


  1. Edvard Miller Miller on

    What do you think? What is the best crypto currency? Bitcoin or litecoin? I can not decide …. It seems bitcoin is better, because bitcoins can be paid in many stores. Besides, I think it’s safer. Many sources write that his course will grow from now on. I understand that many people earn on bitcoins today, here they write about this. I also want to earn money on crypto, but I do not know how 🙁 Who will help me?