- LTC/USD breaks out from an ascending channel formation, inviting further sellers.
- Litecoin foundation has announced a partnership with the UFC at its next event.
The Litecoin price has been pushing lower over the past four sessions now at quite some pace. Market bulls were unable to sustain the upside momentum, which was firmly seen across the board last week. LTC/USD had initially gained a big chunky 66%, before starting to then lose ground and give back some of the advance. Litecoin reached $37.75, its highest level since 20th November. However, now there are several bearish confluences, that are pointing to further downside.
Litecoin Partners with UFC
Litecoin is going to be the “Official Cryptocurrency Partner of UFC 232″, according to the Litecoin foundation’s most recent blog post. This event is set to take place this Saturday evening in California.
As detailed within the blog, the foundation note, “Over the last 25 years, UFC has evolved from a tiny grassroots movement to a global phenomenon. This is largely based on the extremely passionate community. We see many parallels to Litecoin in this way as our amazing community has been instrumental in our growth and providing unwavering passion and enthusiasm that continues to propel us forward.”
During the UFC event, Litecoin will have their logo displayed in and around the fight octagon. This being part of the sponsorship and partner arrangement. Furthermore, the team at Litecoin says, “This is a milestone for Litecoin and cryptocurrency in general as no other coin has sponsored a UFC event to date.” The Litecoin foundation is hoping that this UFC 232 event will be the start of a “long and fruitful relationship” between the UFC and LTC.
Technical Review – LTC/USD
LTC/USD 4-hour chart. Price action was moving within an ascending channel formation. However, bears managed to force a breach, inviting further selling pressure. Arrow demonstrated the next areas of demand.
In terms of the most recent LTC/USD bull run, between the 17th – 24th December, price action was moving within an ascending channel formation. Technically, such a pattern is usually vulnerable to a breakout to the downside. On the 24th December, the bears managed to force a breach of the lower supporting trend line. As a result, the sellers further piled in, pushing the price to the south, entering a new near-term bearish trend.
LTC/USD daily chart. A shooting star candlestick can be eyed on the 24th December. The arrows point to the next areas of demand.
It isn’t too surprising to see the cooling in price action, given the fast explosive run that observed last week. This now raises concerns as to whether the bear market was over, as some may have hoped with this brief ‘Santa rally’. An additional bearish confluence is a shooting star, which can be seen on the daily chart view. This had formed on the 24th December, when the market slipped back within a trend lower. A near-term demand area is eyed from $30-$27: should this fail to hold, then a return back towards $23-22 could be seen.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
