The LTC/USD pair has formed a triangle that looks like a bearish pennant. Its resistance line is the support from the previous structure and it was well respected in the past both on the previous structure as support and now as resistance.
Litcoin is at 24.23 on FXOpen now. Currently, the cryptocurrency price is in a downward trajectory as it was rejected at around the 50-hour SMMA and we may see another interaction with the triangle’s support line again.
This interaction may lead to a breakout from the downside towards $21.98 as this is the next significant horizontal support level, strong enough to withhold the sell-off momentum.
However, if the altcoin price goes up and we see a breakout from the upside, it’s expected that the price wouldn’t go further than the resistance at $27.75. This is the previous high level because this current triangle structure is a correction after a down move so a trend continuation is expected.
In either case, we would expect to see the price significantly lower, but this might not happen in a straight line.