Litecoin Technical Analysis for 01/05/2016 – Pressure in the Market

 

Litecoin is currently trading in a very tight range. The price band between $3.51-$3.53 has acted as resistance about five times during December of 2015.

 

The major pivot zone at $3.30 continues to act as support. Litecoin has not traded under this level since the beginning of December, so if the market breaks lower again, this level is very likely to act as support once again.

Although the lower time-frame charts are not giving any clues regarding the potential future direction of the market, the 4-hour chart is a little bit more revealing. An examination of the the price action on the 4-hour chart shows a triangle formation. A similar pattern occurred back in November of last year, which resulted in a very violent break-out that pushed Litecoin to $3.70. Triangle patterns are signs of pressure building up in the market, so it wouldn’t surprise me to see a big move very soon.

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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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