The Litecoin (LTC) price attempted to breach a significant long-term horizontal level but retreated to a short-term support point.
Will this support prompt a bounce for Litecoin, or will it result in a breakdown? Let’s delve into it!
Litecoin’s Struggle for Sustained Growth Analyzing the weekly timeline, Litecoin’s price demonstrated a downward movement beneath a descending resistance trend line since April 2021, reaching a low of $40 in June 2022.
A subsequent uptick in June 2023 initiated a breakout from the trend line, but the surge was brief (marked in red), leading to a drop below the trend line. Another upward movement occurred in October, facilitating another breakout from the trend line at the beginning of November.
The LTC price confirmed the trend line as a support level (indicated in green) and began an upward trajectory last week. Yet, this upswing was short-lived, resulting in a decline this week. Market traders often refer to the Relative Strength Index (RSI) as an indicator of momentum to gauge overbought or oversold conditions and make decisions regarding asset accumulation or sale. An RSI above 50 coupled with an upward trend signals a bullish stance, while readings below 50 indicate the opposite. Presently, the RSI stands at 50, reflecting an uncertain trend. Expert Insights Noteworthy cryptocurrency traders and analysts on X express optimism regarding the future trend of LTC’s price.
Xero Crypto highlighted the GrayScale Litecoin trust, foreseeing a potential alignment of the LTC price shortly:
“Grayscale $LTC trust is already valued at over $100 per coin. Time for spot price to catch up.”
JoaoDevesa anticipates LTC’s outperformance compared to Bitcoin (BTC) due to its breakout from a descending wedge pattern. Fernando Sperandio echoes similar sentiments but emphasized an inverse head and shoulders pattern in the forecasted trend. Forecasting LTC’s Future: Bounce or Downturn? The daily timeframe’s assessment is uncertain due to price action and RSI readings.
Although the LTC price breached a descending resistance trend line and the $68 resistance zone, it couldn’t maintain its upward momentum. Since December 9, the price has dipped after surpassing the $76 horizontal resistance area, nearing the $68 support level. Similar to the weekly timeframe, the daily RSI is inconclusive, hovering around 50. Therefore, how LTC responds to the $68 area will likely determine its future trajectory. Should Litecoin dip below $68, it might decline by 18% toward the subsequent support at $58. However, a bounce and an upward breakout beyond $76 could signify a 30% increase, targeting the next resistance level at $92.50.
