Litecoin succumbs to rising pressure of ascending channel

Litecoin suffered heavy losses in the past couple of months. It fell by 35.85% over five days in September, resulting in its depreciation from $79.92 to $51.27. The following month did not offer any relief as the coin reported a fall of 7.31%, however, November provided temporary relief to the price as it noted an 8% boost.

The boost in price was negated as the coin breached out of a bearish pattern, resulting in its price being pushed down, once again.

Daily 

Source: LTC/USD on TradingView

The daily chart of Litecoin exhibited an ascending channel. The price of the coin was observed to be constricted within the rising lines of the trend as they marked the higher highs at $$56.24, $58.76, $60.44, $65.48, and $68.50, and higher lows at $46.49, $57.75, and $60.10. The volume of LTC too was noted to consolidate.

The market was dominated by the 100 moving average noted above the 50 moving average and the candlesticks. With the breach of the ascending channel, the bearish momentum appeared to be strong.

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The MACD indicator underwent a bearish crossover, at press time, reversing the trend to a bearish one. However, with the MACD line and the signal line treading close, the trend could be reversed again. Whereas the Relative Strength Index pointed toward the oversold zone but maintained equilibrium between the buying and selling pressures of the coin.

Conclusion

The market of Litecoin was re-visited by the bears with the breach of the ascending channel. The coin reported a fall of over 10%, at press time and was valued at $58.81 with a market cap of 3.79 billion.

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