I outlined the technical significance of the $3.75 pivot in my prior Litecoin analysis article, and it seems that this area is continuing to play an important role on the Litecoin charts. This zone has acted as support/resistance several times over the past few days.
There is also another significant pivot that has developed since the big drop on December 11. The 1-hour chart shows that $3.65 has been used as resistance on two occasions, and another four times as support between the 15th and 16th. Litecoin’s exchange rate is currently trapped between $3.65 – $3.75.
If we take a more broad view of the price action since the 11th of December, it becomes fairly obvious that the market has been trading in a progressively narrowing range. A triangle formation is clearly visible on the 1h/2h/4h charts. Triangle formations very often resolve themselves with violent breaks. A good example of this is the recent triangle pattern on Ethereum, which broke to the downside.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart Source: https://www.okcoin.com/market.do?symbol=1
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