Litecoin (LTC) Price Reaches Crucial Resistance

Please fol­low and like us:
Pin Share

Lite­coin (LTC) price has increased over the past five days. Despite this increase, it is uncer­tain whether a rever­sal has begun or if LTC is in a relief rally.

The Lite­coin (LTC) price has fall­en under a descend­ing resis­tance line since reach­ing a high of $413.49 in May 2021. The line reject­ed the price in Feb­ru­ary (red icon), ini­ti­at­ing the cur­rent down­ward movement. 

Last week, the LTC price bounced at the $68 sup­port area (green icon), val­i­dat­ing it and cre­at­ing a long low­er wick (green icon). This is con­sid­ered a sign of buy­ing pres­sure. More­over, the week­ly RSI bounced at 50, anoth­er bull­ish sign. 

If the price breaks out, the main resis­tance area would be at $105. This is the final resis­tance before $270. There­fore, if the LTC price breaks out above it, it could great­ly accel­er­ate the rate of increase. 

How­ev­er, if the resis­tance line rejects the price, anoth­er test of the $68 sup­port area would be in the cards.

Litecoin (LTC) Price Weekly Outlook
LTC/USDT Week­ly Chart. Source: Trad­ingView

Litecoin (LTC) Price Movement – Relief Rally or Reversal?

The tech­ni­cal analy­sis from the dai­ly time frame pro­vides a mixed out­look. The Lite­coin price has bro­ken down from an ascend­ing wedge and could be in the process of val­i­dat­ing it as resis­tance (red icon).

More­over, the dai­ly RSI has fall­en below 50, a sign of a bear­ish trend. The LTC price seems to have com­plet­ed a five-wave upward move­ment, which took the shape of a lead­ing diagonal. 

After­ward, the dig­i­tal asset bounced at the 0.618 Fib retrace­ment sup­port lev­el (green icon). It is uncer­tain if the bounce is just a relief ral­ly or if the cor­rec­tion is already complete. 

In case the cor­rec­tion is com­plete, the LTC price would be expect­ed to break out above the resis­tance line and the $115 area. Then, it could increase toward $275. How­ev­er, if this is only the first part of the cor­rec­tion, the price could fall to the $52 sup­port area. The next 24 hours could be cru­cial in deter­min­ing which is the cor­rect outlook.

Litecoin (LTC) Price Wedge
LTC/USDT Dai­ly Chart. Source: Trad­ingView

To con­clude, whether the LTC price reclaims the sup­port line of the pre­vi­ous wedge could deter­mine the future trend. If it does, the price could break out from the long-term descend­ing resis­tance line. If it gets reject­ed, a fall toward $52 could follow.

For BeInCrypto’s lat­est cryp­to mar­ket analy­sis, click here.


BeIn­Cryp­to strives to pro­vide accu­rate and up-to-date infor­ma­tion, but it will not be respon­si­ble for any miss­ing facts or inac­cu­rate infor­ma­tion. You com­ply and under­stand that you should use any of this infor­ma­tion at your own risk. Cryp­tocur­ren­cies are high­ly volatile finan­cial assets, so research and make your own finan­cial decisions.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.