The Litecoin (LTC) price has recently returned to a long-term support level after falling since July 2023.
Yesterday, the price of LTC bounced, creating a bullish candlestick on the daily chart.
Litecoin Returns to Support
Looking at the weekly chart, the analysis shows that the LTC price has been in decline since reaching a high of $115 in July 2023. It dropped to a low of $56 in August before experiencing a brief bounce and subsequent drop. Last week, it created a higher low, validating a long-term ascending support trend line that has been in place since June 2022.
Traders often use the Relative Strength Index (RSI) as a momentum indicator to assess market conditions. If the RSI reading is above 50 and the trend is upward, bulls have an advantage. However, if the reading is below 50, the opposite is true. Currently, the weekly RSI is at 50, indicating an undetermined trend.
What Are Analysts Saying?
Crypto traders and analysts hold mixed views on the future LTC price trend. Joao Devesa believes that there may be a significant increase in LTC price soon due to a potential breakout from a long-term pattern. On the other hand, Diamond Hands is bearish and points out two ascending parallel channels that could trigger downward movements if broken.
LTC Price Prediction: Further Downside or Trend Reversal?
When looking at the 2-day chart, there is still no confirmation of the trend’s direction. However, based on Elliott Wave theory, which analyzes long-term price patterns and investor psychology, there are indications of a bullish leaning wave count. If this holds true, LTC could experience another upward movement and potentially reach the next resistance at $122, representing an 80% increase.
Despite this bullish prediction, a decrease below the September 2023 low of $57.30 would invalidate the bullish count and could lead to a 30% fall to the closest support at $48.
Hot Take: The Future of Litecoin (LTC) Price
The future of Litecoin’s price remains uncertain as analysts have differing opinions. While some anticipate a potential breakout and significant increase, others see the possibility of downward movements. Traders and investors should closely monitor key levels and indicators to make informed decisions about their LTC holdings.
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