On Apr 3, 2019, the Litecoin price reached a high of ₿0.0186. A gradual decrease followed shortly after. After reaching levels close to ₿0.018 on June 12, a rapid decrease ensued.
In the end of June, the LTC price made two lows below ₿0.01 before beginning an upward move.
How long will the increase continue? Keep reading below and find out.
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Litecoin Price: Trends and Highlights for June 2
- LTC/BTC has found support above the 200-week moving average.
- It is following a descending support line.
- The short-term moving averages have made bullish crosses.
- There is short-term bullish divergence developing in the RSI.
Long-Term Litecoin Price Action
A look at the weekly time-frame shows that the Litecoin price has found support above ₿0.1 before beginning an upward move.
Last week’s candle had a very long lower wick, indicating that there was buying pressure around that area.
This support level also coincides with the 200-week moving average, which previously acted as resistance in December 2018.
Will the Litecoin price fall below this level or will the upward move continue?
LTC Price: Possible Support
A look at the six-hour time-frame shows that the LTC price has been trading alongside a descending support line since Mar 10.
At the time of writing, it had touched the support line four times. After doing so, it began an upward move.
The line also coincides with the 0.786 fib level of the entire upward move.
This line is likely to provide support. However, it is a descending support line.
Therefore, a continued decrease at the rate predicted by the line without it being broken would still take us to the 0.88 fib level near ₿0.0082 in the middle of July.
In order to predict whether that is likely, a look at technical indicators is required.
Technical Indicators
A look at the moving averages shows two interesting developments:
First, both short- and long-term moving averages have made bullish crosses.
The 100- and 200-period MAs did so on June 11, while the 10- and 20-period ones on June 30.
Secondly, there is a very significant resistance area near ₿0.013.
This was found by previous support at the beginning of June and the 100- and 200-period MAs.
If the Litecoin price were to move above this area, it is possible that it could again reach highs near ₿0.02.
Another thing to keep an eye on is the bullish divergence developing in the RSI.
The price touched the support line on both June 26 and June 29.
During this time, the RSI generated successively higher values.
This is known as bullish divergence and often precedes Litecoin price increases. In the case of LTC, it preceded the bounce originating from the support line.
The analysis of these technical indicators supports an increase towards the resistance area near ₿0.013
Summary
The price of Litecoin has been decreasing since April 2019. It is currently following a descending support line and is trading inside a significant support area.
An analysis of technical indicators supports the beginning of an upward move towards the resistance area outlined above.
What do you think about the price of Litecoin? Let s know your thoughts in the comments below!
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
