The Litecoin (LTC) price trades above a long-term support trend line that has existed for 600 days.
LTC bounced at a minor support level yesterday but has failed to reclaim the previous range low.
Can Litecoin Hold Above Support?
The weekly time frame technical analysis shows that the LTC price has increased alongside an ascending support trend line for nearly 600 days. The trend line has been validated numerous times (green icons), most recently this week. Currently, the trend line also coincides with a horizontal support area.
While the LTC price began a bounce in August 2023, it failed to sustain it and traded close to the support trend line again. The Litecoin team recently announced that EDX, an institutional exchange backed by some of the biggest names in finance, is expanding into Asia. EDX supports trading for Bitcoin, Ethereum, and Litecoin.
The weekly Relative Strength Index (RSI) gives a bearish reading.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The indicator is below 50 and falling (red circle), showing a bearish trend.
LTC Price Prediction: Can Price Sustain the Bounce?
The technical analysis from the six-hour time frame suggests that the LTC price is more likely to break down from the long-term support level. This is because of the price action and the RSI.
The price action shows that LTC has decreased under a descending resistance trend line since December 2023. The most recent rejection (red icon) happened on January 12 and led to a breakdown from the $68 horizontal area.
Yesterday, LTC bounced at the $63.50 horizontal support area. However, this is a minor level compared to the $68 one. Additionally, the six-hour RSI shows bearish signs since it broke down from the bullish divergence trend line (green) that preceded the previous bounce. If the LTC price breaks below $63.50, it can fall 8% to the next closest support at $60.50.
Despite this bearish LTC price prediction, reclaiming the $68 area can trigger a 12% increase to the resistance trend line at $73.
Source : BeInCrypto by Valdrin Tahiri / Jan 24, 2024