Litecoin has been having a hard time breaking above $3.75 since the end of November. This area has acted as resistance about four different times in the past two weeks. So why is the market having such a hard time breaking out here?
A quick look at the chart from the start of November reveals some important details. The $3.70 area acted as support about four times towards the end of October and into the start of November. Price plunged under $3.70 on the 5th of November under very heavy volume, and this price level then turned into resistance. Litecoin traded well below the $3.70 pivot area for most of November, but this pivot is now acting as a major barrier once again.
There is also a clearly visible ascending triangle formation on the 1h/2h charts, which suggests that pressure is building up in the market. A similar pattern occurred on Bitcoin a few days ago that resulted in a very explosive breakout. Will Litecoin explode upwards in a similar fashion? I guess we’ll find out.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart Source: https://www.okcoin.com/market.do?symbol=1
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