Litecoin again fell below the psychological mark of $45 and is trading at around $44.05 at the time of publication.
LTC/USD has been showing a steady decline since June and has become one of the most bearish cryptocurrencies, having lost almost 70 percent of its value.
Technical analysis shows that before starting the recovery, the LTC/USD pair may fall to the area of the support level of $36 on short timeframes. On a 4-hour chart, the LTC/USD pair forms a head-shoulders pattern, and the overall bearish target of the bearish pattern is at $36. On the 4-hour chart, the levels of $47 and $50 are the key technical resistance levels. And strong support levels are located around $40 and $36.
The daily chart only confirms the bearish mood of the LTC/USD pair. Here, the price moves inside the large figure of the falling wedge, while the bottom of the wedge is located near the level of $36. On the daily chart, the resistance levels are located around $57 and $70. The support level is at $30.00.
It is not a fact that has reached $36, the LTC/USD pair will resume its growth. But often, falling wedge patterns are used as reliable reversal patterns.
In the case of resumption of growth, the pair LTC/USD may show growth in the region of $70. But this will happen subject to a bullish breakout from the wedge model.
Before starting to grow, the pair LTC/USD may demonstrate a decline, and this will happen in the coming days. Four-hour and daily charts show that the level of $36 could be the starting point for the rise in Litecoin price.