LTC/USDT — Falling Wedge Formation Signals Potential ReversalOn the 8-hour timeframe, Litecoin (LTC) remains in an overall downtrend. However, the price structure is not moving in parallel lines, indicating that this is not a descending channel. The upper resistance trendline is steeper than the lower support trendline, signaling weakening bearish momentum.
Price is currently trading near the final phase of the pattern, approaching the apex, where a strong directional move (breakout or breakdown) is likely to occur.
---
Pattern & Price Structure
Pattern Identified: Falling Wedge (Bullish Reversal Pattern)
Key characteristics visible on the chart:
Continuous lower highs, forming a sharply declining resistance
Lower lows, but with decreasing downside momentum
Price compression, indicating reduced selling pressure
Non-parallel trendlines, distinguishing it from a descending channel
Technically, a falling wedge forming within a downtrend often precedes a bullish trend reversal, pending confirmation.
---
Key Levels
Support Zones:
80.0 USDT (current reaction zone)
76.0 – 72.6 USDT (major support & pattern invalidation level)
Resistance Zones:
85.8 USDT (near-term resistance)
93.5 – 96.5 USDT (key structural resistance)
104 – 110 USDT (major supply zone)
---
Bullish Scenario
The bullish scenario becomes valid if:
1. Price breaks above the falling wedge resistance
2. An 8H candle closes above 85.8 USDT
3. The market prints a first higher high as confirmation
Bullish Targets:
93.5 – 96.5 USDT
104 USDT
110 USDT (if momentum strengthens)
A confirmed breakout would suggest a shift from bearish control to recovery phase.
---
Bearish Scenario (Pattern Invalidation)
The bearish scenario occurs if:
Price fails to break out from the wedge
76 USDT support is broken with strong volume
Bearish Targets:
72.6 USDT
Extension toward the 70 USDT area if selling pressure accelerates
Such a move would invalidate the falling wedge and confirm bearish continuation.
---
Conclusion
Price action aligns more accurately with a falling wedge
The pattern suggests potential bullish reversal, but:
Confirmation is mandatory
Until a breakout occurs, the dominant trend remains bearish
The optimal approach is to wait for confirmation rather than anticipate.
---
#LTC #Litecoin #LTCUSDT #FallingWedge #BullishReversal #CryptoAnalysis #TechnicalAnalysis #Altcoin #CryptoTrading
