The Litecoin (LTC) price has been decreasing since it was rejected by the long-term $238 resistance area.
Litecoin is currently trading between resistance and support. While technical indicators are leaning bullish, a breakout is required for the bullish trend to be confirmed.
Rejection from Long-Term Resistance
Litecoin has been decreasing since Feb. 20, when it reached a local high of $248. The rejection holds more importance since it occurred right at the 0.618 Fib retracement level of the downward move.
This is an important resistance area. LTC has to close above it for the trend to be considered bullish.
The weekly RSI has generated a hidden bullish divergence, a strong sign of trend continuation. Similarly, the MACD and Stochastic oscillator are both increasing.
Therefore, LTC is expected to eventually break out above this area.
Future LTC Movement
The daily chart provides a very similar outlook with the weekly.
After deviating below $180, LTC has reclaimed the area and validated it as support. This is a bullish development that often leads to a sustained movement in the other direction.
However, similar to the weekly time-frame, LTC has been rejected by the 0.618 Fib retracement of the most recent decrease. Until it manages to reclaim it, we cannot consider the trend bullish.
Nevertheless, technical indicators suggest that LTC will be successful in moving above this area.
Therefore, as long as LTC does not close below $180, the trend is considered bullish.
Cryptocurrency trader @TradingTank tweeted an LTC chart stating that it looks to be time for LTC to begin moving upwards.
LTC is trading below numerous resistance levels, as outlined above.
However, it has just broken out from the $195 resistance area and validated it as support after.
Therefore, it’s likely that the short-term trend for LTC is bullish.
The weekly chart for LTC/BTC shows it approaching the ₿0.003 long-term support area.
While there is a bullish divergence developing in the RSI, the MACD and Stochastic oscillator are neutral/bearish.
Therefore, consolidation between the ₿0.003 support and ₿0.0055 resistance area seems to be the most likely scenario.
Litecoin is trading between important long-term resistance and support levels.
While it’s likely that the trend is bullish, a breakout would be required for the positive trend to be confirmed.
If so, LTC would be expected to increase towards a new all-time high price.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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