FX.co ★ Short-term technical update on Litecoin.

Red lines -wedge pattern

blue line- bullish divergence

green line- resistance (previous support)

Litecoin is trading around $57.50-$58 where we find the first important resistance as we explained in our last analysis. Having adjusted the wedge pattern a bit in order to have a more meaningful upper boundary, combined with the fact that the horizontal resistance (previous support) plays also an important role in the near term trend, we see that there is still room to the upside without canceling the wedge pattern. Litecoin has still a lot of room inside the downward sloping wedge pattern. This means that price could reach as high as $65 and still turn lower for a new lower low below $41. Trend remains bearish. A new bullish divergence signal by the RSI could bring the trend reversal closer. For now we consider this upward move as a relief bounce.