Will the halving be able to throw Litecoin (LTC) above $100
Date: 2023-08-02 Author: Karina Ziganova Categories: BLOCKCHAIN
Litecoin made a bullish breakout of a short-term bullish pattern, but failed to consolidate the gains. Now LTC is trading near the levels that preceded the breakout
However, the Litecoin trend can still be considered bullish until the price closes below the levels prior to the breakout.
Litecoin bounced off resistance
As the results of the technical analysis of the weekly chart show, the price dynamics and the RSI indicator give bearish signals.
The price action is bearish as it demonstrates LTC price deviation (red circle) above the $100 horizontal area, after which the price confirmed this area again as resistance. This deviation is considered a bearish sign and most often leads to significant downward movements. This happened with the Litecoin rate, which is now trading around $90.
The long-term rising support line, which is over a year old, is currently at $72.
In addition, the weekly RSI also supports the continuation of the decline. Although this indicator is still above 50, it formed a bearish divergence (green line) during the price rejection. This is a bearish development of events, when the price increase is accompanied by the fading of momentum. This confirms the likelihood that the trend is bearish.
LTC Forecast: Why the Bullish Breakout Failed
On a shorter time frame, you can see that Litecoin price made a bullish breakout from the falling wedge on July 28th. The wedge is considered a bullish pattern and a break out of it should have resulted in a significant upside.
Shortly after the breakout, the price of LTC declined, recognizing the $88 wedge resistance line as an upward barrier. Since a long lower wick (green icon) formed on the chart, it is possible that this is a retest of the previous resistance.
However, RSI does not confirm this possibility. The indicator dropped below 50 (red circle) and is moving down. This is a sign of a bearish trend and is not associated with breakouts of bullish patterns.
Due to these conflicting signals, the outlook for LTC will depend on whether the price drops below the $88 wedge resistance line or continues to bounce.
If the price drops below this level, it could drop another 9% and reach the $82 horizontal support area. However, if the bounce continues, then LTC could rise by 13% and reach the $102 resistance area.
