The Litecoin (LTC) Price: Will $60 Hold or Fold Next?
The price of Litecoin (LTC) has experienced a decline since reaching its yearly high of $115 in July. Additionally, the price has broken down from a short-term ascending support trendline. The question now is whether the $60 level will hold or if it will fold next.
Litecoin Falls After Deviation
On the weekly timeframe, technical analysis for Litecoin shows that the price broke out from a 770-day descending resistance trendline in June, reaching a new yearly high of $116. However, it deviated above the $105 resistance level and then sharply fell below it.
Currently, LTC is trading slightly above the $60 horizontal support area after decreasing below the long-term trendline in August.
The weekly RSI indicates a bearish reading, suggesting a downward trend. Traders can use the RSI as a momentum indicator to determine whether a market is overbought or oversold and make decisions accordingly.
A reading above 50 with an upward trend favors bulls, while a reading below 50 signifies a bearish trend. Currently, the RSI is below 50 and falling, indicating a bearish trend for Litecoin.
Litecoin Price Prediction: What Will Happen Next?
On the daily timeframe, the readings for Litecoin are mixed but slightly leaning towards a bearish outlook. The price broke down from an ascending support trendline on October 4, signaling the end of the previous upward movement.
Furthermore, the reaction to the minor $68 resistance area has been bearish. Despite deviating above it in August, Litecoin failed to break out twice before falling below the ascending support trendline.
Although the price action appears bearish, there is hope for a bullish trend reversal based on the RSI. The bullish divergence trendline that preceded the increase is still intact, indicating a potential trend reversal.
However, it’s important to note that the divergence trendline does not negate the bearish price action. If the decrease continues, LTC could fall by another 9% to reach the minor support level at $58.
Hot Take: Potential for a Bullish Trend Reversal
Despite the bearish Litecoin price prediction, if the ascending support trendline and $68 area are reclaimed, it would indicate a bullish trend. In this scenario, there could be a 30% increase to the next resistance level at $83.
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