Litecoin Price Falls After Deviation Above Resistance
The Litecoin (LTC) price fell after breaking above the $100 resistance area in July. The future trend of LTC will depend on whether it breaks down or bounces from a long-term ascending support line.
Key Points:
– The price action and indicators on the weekly timeframe suggest a bearish outlook for LTC.
– The price failed to sustain its breakout above $100, confirming it as resistance and initiating a downward movement.
– The LTC price now trades at a long-term ascending support line that has been in place for over a year.
– A breakdown from the support line could lead to a 20% drop to $64, while a bounce could result in a 33% increase to $100.
Weekly RSI Reinforces Downtrend
The weekly Relative Strength Index (RSI) also indicates a bearish trend for LTC. The RSI reading has dropped below 50 and displayed a bearish divergence during the previous deviation.
Will Price Save Breakdown?
Despite the recent decline in price, there is potential for a rebound in LTC. The asset experienced its third halving event, increasing its scarcity. LTC has been trading within an ascending parallel channel since February, and it has not decisively closed below the channel’s support line.
Wave Count and Price Prediction
The wave count supports the idea of a possible local bottom for LTC. If the movement within the channel is part of a larger corrective structure, a substantial price rebound could be anticipated. The prediction for LTC’s price depends on whether it breaks down from the long-term support line and channel or experiences a bounce.
Hot Take:
Although the LTC price has fallen after breaking above resistance, there is still potential for a rebound. The future trend of LTC will be determined by whether it breaks down or bounces from the long-term support line. Traders should closely monitor the price action and indicators to make informed decisions.
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