Litecoin likely to breakout from pennant to $67 by next weekend

  • 08 November 2019, Friday, 16:00

Litecoin has lately been making quite an effort to push back to its glory days. Recording a 20% rise in price in just over two weeks, LTC had a value of around $60, at the time of writing. According to CoinMarketCap, Litecoin had a market cap of almost $3.9 billion and a daily trading volume of over $3.2 billion. Further, LTC was traded most on CoinEgg exchange; paired up against ETH, its trading volume represented 11.69% of its total trading volume over a 24 hour period.

Litecoin 1-hour chart

Source: LTC/USD on TradingView

The hourly chart for Litecoin showed the price following a clear pennant pattern, oscillating between the trend lines since late-October. The decreasing volume trend over the period also confirmed the pattern, for which downward trending volume occurs 89% of the time. Generally, pennants break out upwards 57% of the time, something which could be a sign of Litecoin‘s short-term rise.

However, looking at the MACD chart, a bearish movement could be in store, with the signal line crossing over the MACD line earlier today. A decrease in LTC’s price could also be corroborated by the fact that both the signal and MACD lines look to be trending between -1 and 0, with a slight bearish momentum. The RSI or Relative Strength Index was seen moving around the 38 mark, close to being oversold, but still within the boundaries.

With none of the indicators showing overly significant pressure, it is likely that the price of Litecoin will continue along the pattern, bouncing between the trend lines and breaking out to $67 by the end of next week.