The Litecoin chart (LTCUSD) used in this analysis is a candlestick chart with a logarithmic scale.
A falling diagonal (wedge) chart pattern is indicated to capture the bearish action in LTCUSD.
The bottom of the wedge is expected to offer support for LTCUSD and a close below could trigger more shorting. The relative strength index (RSI) as shown here is already oversold and a close of price below the previous close of $56.50 at the end of the Daily candle would have helped establish a positive or bullish divergence.
This implies that the current bearish momentum is running out, but at the same time does not by itself offer reasons to initiate a long (buy) position. Use of physical measurements based on the chart pattern is best carried out on an arithmetic scale.
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