The Litecoin (LTC) price has been on a downward trend since reaching a high of $80 on December 9. Although the price has increased since August 17, it is currently trading inside a corrective pattern.
Litecoin Creates Bearish Candlestick
On the weekly time frame, technical analysis shows that the LTC price has fallen under a descending resistance trend line since April 2021. While it briefly moved above this trend line in June and October, it failed to sustain the upward movement. Last week, Litecoin created a bearish engulfing candlestick.
The RSI, a momentum indicator used by traders to evaluate market conditions, currently sits at 50, indicating an undetermined trend.
What Are Analysts Saying?
Cryptocurrency traders and analysts are bullish on the future LTC price trend. World Of Charts predicts that the price will increase to $300 after breaking out of its long-term pattern. Joao Devesa also has a similarly bullish outlook, believing that the LTC price will outperform BTC.
LTC Price Prediction: Correction Incoming?
On the daily timeframe, the LTC price is showing bearish signs. It is contained within an ascending parallel channel, which often indicates corrective movements. The fact that it was rejected by the 0.382 Fib retracement resistance and trades below the channel’s midline supports the possibility of a breakdown. The daily RSI also gives a bearish reading.
If the LTC price breaks down from the channel, it could decrease by 20% to the closest support at $58. However, a breakout from the channel could trigger a 30% increase to the 0.618 Fib retracement resistance level at $92.
Hot Take: Litecoin’s Price Faces Uncertainty
The Litecoin (LTC) price has been trending downward since reaching a high of $80 on December 9. While analysts have different opinions on the future price trend, the current technical indicators suggest uncertainty. The bearish candlestick pattern and the daily RSI reading below 50 indicate a potential correction or breakdown. However, if the price manages to break out of its long-term pattern and the channel, it could experience a significant increase. Keep an eye on the key levels and monitor market conditions to make informed trading decisions.
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