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Litecoin (LTC) Price Rebounds from 600-Day Support: A Bullish Signal?

2 mins
Updated by Ryan James
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In Brief

  • Litecoin's price trades in the lower portion of a corrective ascending parallel channel in place for more than two months.
  • The weekly and daily time frame readings are both leaning bearish but do not give a decisive perspective on the trend.
  • Despite the bearish short-term LTC price prediction, a breakout from the short-term resistance can trigger a LTC bounce.
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The Litecoin (LTC) price trades above a diagonal and horizontal support area that has been in place for more than 600 days.

Litecoin moves inside a short-term corrective pattern, barely holding on to its support trend line.

Litecoin Holds Above Support

The weekly time frame technical analysis shows that the LTC price has increased alongside an ascending support trend line since June 2022. The trend line has been validated six times (green icons), most recently last week. 

The LTC bounce also coincided with a horizontal area that has existed for more than 600 days, acting as both resistance and support. 

Litecoin (LTC) Price Movement
LTC/USDT Weekly Chart. Source: TradingView

The weekly Relative Strength Index (RSI) leans bearish. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.

Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The indicator is below 50 (red circle) and falling, both signs of a bearish trend.

What Are Analysts Saying?

Cryptocurrency analysts and traders on X have mixed opinions on the future LTC trend. 

Matthew Dixon is bullish, predicting a movement to $85.

According to WB on the daily outlook, #LTC is due for a push higher to the grey box area, however, caution is advised ahead of the #FOMC rate decision tomorrow as this will likely provide solid direction to all markets including $LTC #BTC & others

Litecoin (LTC) Price Movement
LTC/USDT Daily Chart. Source: X

However, Valeriya is bearish because of a short-term breakdown expecting lower prices soon.

Read more: How To Buy Litecoin (LTC) in 4 Easy Steps

LTC Price Prediction: Will an Upward Movement Finally Begin?

The daily time frame technical analysis also leans bearish because of the price action and RSI readings.

The price action shows that LTC has traded inside an ascending parallel channel since September 2023. Such channels usually contain corrective movements, meaning an eventual breakdown from it is likely.

Furthermore, the Litecoin price has followed a descending resistance trend line (dashed) since a rejection from the channel on December 9, 2023.

Finally, the daily RSI is below 50 and falling (red circle), both signs of a bearish trend.

If LTC breaks down from the channel, it can fall 25% to the closest support at $50.

Litecoin (LTC) Price Movement
LTC/USDT Daily Chart. Source: TradingView

Despite this bearish LTC price prediction, a breakout from the short-term resistance trend line can trigger a 20% increase to the top of the channel at $80.

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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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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)
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