Litecoin Technical Analysis for 02/04/2016 – Triangle Formation

Litecoin rallied to a high of $3.46 on the 20th of January, and price has been slowly ticking into a progressively tighter range. There is a clear descending triangle formation visible on the 4-hour chart. Yesterday, a very similar formation on the Bitcoin chart broke in a very violent manner to the upside!

The bottom of that triangle formation is also a major pivot zone. The $3.06 area has been used as support on more than six occasions in the past thirty days. The exchange rate spiked bellow $3.06 many times, but was unable to actually close underneath $3.06 and stay there for any length of time.


From a longer term perspective, the $3.30 level continues to be a major pivot zone. If the current triangle formation breaks up – just like the Bitcoin one from yesterday – then $3.30 is very likely to act as resistance again. Mark this price level on your charts – it is very important from a technical point of view and I am sure many traders are watching it.

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Disclaimer:  This is not trading/investment advice!

Image Source: 1

Chart Source: https://www.okcoin.com/market.do?symbol=1

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Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

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