Litecoin Price Watch: Is A Triangle Breakout In Progress?

The value of Litecoin is presently in a descending triangle, and it’s due to test the bottom, probably getting ready for an enormous breakout very soon.

The Signals of Technical Indicators

The 100-Day simple moving average is below the longer-term 200 simple moving average to indicate that the path of least resistance is on a downward trend. In other words, there are higher chances that the support level will likely break instead of holding.

The 200 simple moving average also aligns with the top of the triangle to add to it and increase its strength. A decline below the support could result in a decrease of the same height as the formation, which swings $131 to $160.

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The Relative Strength Index seems to have bottomed out and shows signs of turning higher, possibly drawing buyers back in. stochastic is as well moving up from the levels of oversold to indicate a return in purchasing momentum.

Market Factors

Litecoin is lagging behind most of its digital currency peers as there have been no new and encouraging developments in front of it. Charlie Lee, the Founder of the digital currency, has been tweeting about some positive updates, but traders are not taking this very seriously since he already liquidated his LTC holdings.

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In the meantime, the US dollar has been supported very strongly by basics on the hopes of a stronger rate hike. However, some regulators have shown some concerns about the setback in the labor market and the growth of tepid wage, United States bond yields keep rising on expectations of 2 to 3 rate hikes in 2018.

The minutes of the Federal Open Market Committee (FOMC) is up for publication this week and Fed rhetoric could still shape the price action of the US dollar. Hawkish remarks could result in a breakdown for the LTC/USD pair while careful comments could result in another bounce to the top of the triangle.

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