On May 16, 2019, the price of Litecoin peaked at $106.98/€95.7. A rapid decrease preceded a slight recovery between May 16 and 21.
However, prices were unable to break past the $100 mark before falling again. At the time of writing on May 23, it appeared as if prices were still falling.
In this analysis, we examine Litecoin’s trends and indicators to determine whether the price will likely continue falling or rebound.
Litecoin (LTC): Trends And Highlights For May 23, 2019
- Both LTC/USD and LTC/EUR have been on a downtrend since May 16.
- LTC has created a head and shoulders pattern.
- Bearish divergence has developed in the RSI and the MACD.
- There is support near $60/€55.
Falling From the Shoulder
On May 12, the price reached a low of $83.89. Several market cycles have since been completed. The price has reached the same level five times.
Tracing these lows gives us the horizontal support line outline below:
Furthermore, the highs of May 12, 16 and 20 appear to create a head and shoulders pattern. This is a bearish pattern and typically indicates future price losses.
After May 20, the price did fall—reaching the support line on May 23 and validating it for the fifth time. If price losses continue, a breakdown appears likely.
What About a Breakdown?
To better determine the likelihood of a breakdown, the price of LTC at daily intervals alongside the RSI and the MACD. Since Mar 10, Litecoin appears to have been trading above an ascending support line.