Litecoin (LTC) has exhibited a sustained trading pattern above a significant long-term support trend line that spans an impressive 600 days. While experiencing a recent bounce at a minor support level, LTC struggled to regain its previous range low.
The weekly technical analysis highlights LTC’s price ascent alongside a well-established ascending support trend line for nearly 600 days. This trend line, validated multiple times, including the latest validation this week (indicated by green icons), currently intersects with a horizontal support area.
Despite initiating a bounce in August 2023, Litecoin couldn’t maintain the momentum and once again approached the support trend line. Notably, the Litecoin team made a significant announcement regarding EDX, an institutional exchange supported by major players in finance, expanding into Asia. EDX facilitates trading for Bitcoin, Ethereum, and Litecoin.
In terms of price movement, the weekly Relative Strength Index (RSI) paints a bearish picture. RSI, a momentum indicator, suggests a bearish trend with readings below 50 and falling (highlighted by a red circle). Readings above 50 and an upward trend usually indicate a bullish advantage for bulls.
Analyzing the six-hour time frame, technical indicators point towards a potential breakdown from the long-term support level. LTC’s price action reveals a consistent decline under a descending resistance trend line since December 2023. The most recent rejection occurred on January 12, resulting in a breakdown from the $68 horizontal area.
Despite a bounce at the $63.50 horizontal support area, considered minor compared to $68, the six-hour RSI exhibits bearish signs. The RSI broke down from the bullish divergence trend line (highlighted in green) preceding the previous bounce. If LTC’s price falls below $63.50, a potential 8% drop to the next support level at $60.50 could ensue.
However, amid this bearish outlook, reclaiming the $68 area has the potential to trigger a 12% increase, aiming for the resistance trend line at $73. The market’s ability to hold above key support levels remains crucial for Litecoin’s future price movements.
Aspect | Details |
---|---|
Long-term Support Trend Line | LTCUSD price trades above a long-term support trend line existing for 600 days. |
Recent Bounce | LTC bounced at a minor support level but failed to reclaim the previous range low. |
Weekly Technical Analysis | LTC’s price increased alongside an ascending support trend line for nearly 600 days. |
Validation of Trend Line | The trend line has been validated numerous times, most recently this week (green icons). |
Support and Trend Line | The current trend line coincides with a horizontal support area. |
Recent Announcement | Litecoin team announced EDX, an institutional exchange, expanding into Asia. Supports LTC trading. |
RSI Analysis | Weekly RSI gives a bearish reading, indicating a potential bearish trend. |
Price Action | Price action shows LTC’s decrease under a descending resistance trend line since December 2023. |
Recent Rejection | The most recent rejection occurred on January 12, leading to a breakdown from the $68 horizontal area. |
Six-hour RSI | Six-hour RSI exhibits bearish signs, breaking down from the bullish divergence trend line. |
Horizontal Support | LTC bounced at the $63.50 horizontal support area, considered minor compared to $68. |
Potential Price Movement | If LTC breaks below $63.50, there’s a potential 8% drop to the next support at $60.50. |
Positive Trigger | Reclaiming the $68 area can trigger a 12% increase toward the resistance trend line at $73. |