Litecoin has been trading below a downtrend channel since September 15. At the same time the price has been plotting a descending wedge pattern. In the last hours of trading, the crypto has broken this pattern. Consolidating above from the SMA 21, the Litecoin is likely to gain bullish momentum above this level.
Despite the bullish target, LTC is facing a lot of obstacles ahead such as the first resistance line at EMA 200 (167.50) 7/8 of murray (175.00) and the psychological level of 200.00 located at 8/8 murray.
On the other hand, the high level of indecision overshadows the bullish outlook. The key resistance is at the 200 EMA around 167.50. This will be a strong top for LTC. If the price fails to break it, there could be a new bearish move targeting 5/8 murray level.
The key pivot point for now is 146.96 where there is the SMA of 21 in the 4-hour chart. If LTC returns to trade below this level, the scenario will turn negative and the price could fall to 125.00 level of 5 / 8 by murray.
The technical reading of the eagle indicator is showing an overbought signal. An upward movement is likely to happen to 167.50 in the next coming days. If this happens, the eagle indicator to be extremely overbought and it will be a sell signal. On the contrary, if LTC breaks below 146.00, it will be clear that it is time to buy.
Support and Resistance Levels for September 30 - October 01, 2021
Resistance (3) 158,89
Resistance (2) 156,55
Resistance (1) 154,18
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Support (1) 148,39
Support (2) 143,68
Support (3) 137,89
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Trading tip for LTC for September 30 - October 01, 2021
Buy above 146,96, (6/8) with take profit at 167,50, stop loss below 143,50.
Sell below 145,00 (SMA 21) with take profit at 125,00 (5/8), stop loss above 148,50.
The material has been provided by InstaForex Company - www.instaforex.com