Altcoin: LTC - Litecoin flag pattern. A look At LTC Price (LTC/USD) Chart

Relevance up to 08:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Litecoin is trading in the red at 51.76 at the time of writing. The price action developed a down-channel pattern, a flag formation. Still, it's premature to talk about a new leg higher as long as it stays under the downtrend line.

LTC/USD dropped by 5.28% from yesterday's high of 54.40 to 51.53 today's low. The altcoin could slip lower if Bitcoin approaches new lows. BTC/USD ended its rebound, so the current drop forces Litecoin to drop.

LTC/USD Hovers Above Support!

LTC/USD is trapped within a flag pattern in the short term. Now, it challenges the 52.00 - 51.15 support area. As you already know from my previous analysis, Litecoin signaled exhausted buyers after its failure to approach and reach the median line (ml) or the downtrend line.

The bias is bearish, LTC/USD could drop deeper as long as it stays below the downtrend line. The weekly S1 (51.16) represents critical support.

LTC/USD Outlook!

A valid breakdown below the S1 could activate more declines toward the weekly S2 (45.74) and down to the lower median line (lml).

Staying above the S1 and making a valid breakout above the downtrend line may signal a potential bullish momentum.

InstaForex Analysis

Instant Trading EU Ltd. is the CFD broker operating under the brand instaforex.eu, regulated by CySec with license number 266/15.

Besides CySEC, Instant Trading EU Ltd. is also supervised by the Czech National Bank (CNB), the Slovak National Bank (SNB), and the Polish Financial Supervision Authority (KNF). InstaForex.eu has branches in the Czech Republic, Slovakia, and Poland, where it provides support in local languages. InstaForex.eu is a member of the Investor Compensation Fund (I.C.F) which is an additional security for the client's funds.

InstaForex.eu offers access to around 2,500 instruments (CFDs in Stocks, ETFs, Indices, Commodities, Forex, Cryptocurrencies, US Synthetic Stocks) and the MT4 and MT5 platforms,trading accounts in EUR, USD, PLN, CZK, GBP.

More information at: www.instaforex.eu