Important points
Litecoin (LTC) has been rejected by prolonged diagonal resistance. LTC trades within a short-term ascending parallel channel. If Litecoin goes down, where can we find support?
Litecoin broke below the long-term upward support trend line in July. It has increased since then, but two attempts to regain the trend line have failed.
Let’s analyze Litecoin’s price trend and see if LTC can gather enough strength to regain the trend line or if it has started a downtrend and is making new lows.
Litecoin cannot regain support
The weekly Litecoin chart shows that the price has been rising along the rising support trend line since June 2022. This trend line caused many rebounds until July 2024. Then the price finally crashed.
Since then, Litecoin has failed in its attempts to regain the rising support trend line (black icon).
The latest rejection occurred last week, with the $78 horizontal area confirmed as support. This trend cannot be considered bullish until LTC regains the trend line.
No major news regarding Litecoin, but founder Charlie Lee is excited about the October 15th filing of the Canary Capital Litecoin ETF, which will validate institutional investor interest in LTC. He commented that he thought it was.
LTC/USDT weekly chart |Credit: Valdrin Tahiri/TradingView
The Relative Strength Index (RSI) rejected at 50, while the trend line rejected Litecoin price.
The Moving Average Convergence/Divergence (MACD) has formed a bullish cross (white icon) but has not yet crossed 0 and the positive reading is not enough to offset the remaining bearish signs.
Therefore, Litecoin weekly chart is bearishly tilted. If the downward movement continues, the closest horizontal support will be at $50.
LTC price breakdown
Consistent with the weekly timeframe, the daily timeframe also predicts a bearish Litecoin price. Since the rebound on August 5th, the price has been trading within an ascending parallel channel.
This means that bounces will be fixed and eventually retraced.
Litecoin price has produced several consecutive bearish candlesticks since its rejection on October 19th, and today, October 19th, it fell below the midline of the channel.
LTC/USDT daily chart |Credit: Valdrin Tahiri/TradingView
Once LTC breaks out of the channel, it may gradually decline to $50 long-term support.
Conversely, a close above the minor resistance at $76 and long-term resistance at $78 will invalidate this bearish hypothesis. At this point, that seems unlikely.
Litecoin is expected to fall
Litecoin price failed to regain the long-term upward support trend line that it had previously broken below.
Moreover, the price is trading in a bearish pattern in the short term. A breakdown from the short term could trigger a downward move towards the $50 low range.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, and should not be construed as, financial advice. We make no warranties as to the completeness, reliability, or accuracy of this information. All investments involve risk and past performance is no guarantee of future results. We recommend that you consult your financial advisor before making any investment decisions.
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