Despite the rapid decline on September 2, the long-term bullish structure for Litecoin (LTC) is still intact. As long as the price is trading above the $42 support area, the possibility of bullish continuation remains valid.
Breakout From Long-Term Resistance
At the beginning of August, the Litecoin price broke out from a descending resistance line that had been in place for 889 days. Afterward, the price validated the same line as support. This is a bullish sign in the long-term since a bearish structure in place for nearly three years has been broken. However, technical indicators are not bullish. There is a hidden bearish divergence on the weekly RSI, and both the stochastic RSI and MACD are rolling over.
Possible LTC Bounce
The daily chart supports the possibility of a bounce. Litecoin has been trading very close to the $48 area, which previously acted as the range high. While the price has deviated below these lows, it’s in the process of reclaiming the area as support. If it does so successfully, it could rally to at least $54, the 0.5 Fib level of the previous decline. Technical indicators support a bounce. The Stochastic RSI is in the process of making a bullish cross, and the MACD is also increasing. A continued rally would give a bullish reversal signal. However, there is no bullish divergence on the RSI.
LTC/BTC
The LTC/BTC chart is similarly undecided. The price has been rejected by the long-term resistance area at ₿0.0055 and has been decreasing since. However, the bullish structure is still intact, since the price has been following an ascending support line since the middle of May. Technical indicators are neutral, leaning bullish. Both the MACD and the Stochastic RSI are moving upwards, but the latter has not made a bullish cross. The RSI is neutral. Until the price either breaks out above the resistance area or breaks down from the ascending support line, the direction of the trend is not clear.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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