Litecoin Price Analysis: Is LTC/BTC Getting Ready for a Breakout?

Since then, the Litecoin price has been gradually decreasing. When will the decrease end? Keep reading below in order to find out. For our previous analysis, please click here. Are you interested in trading Litecoin (LTC) on our partner exchange? Then follow this link to get set up on XCOEX!

Litecoin Price: Trends and Highlights for July 3

• LTC/BTC is trading inside a symmetrical triangle.
• There is a slight bullish divergence developing in the RSI.
• The LTC price is following a long-term descending support line.
• It is facing resistance from the daily moving averages.

Litecoin Price in a Symmetrical Triangle

Since reaching the aforementioned low on June 27, the LTC price has been increasing, creating several higher lows. It has been trading inside the symmetrical triangle outlined below:

At the time of writing, it was trading in the middle of the channel after bouncing from the support line on July 4. An analysis of technical indicators supports an increase towards the resistance line of the triangle. We can see below that the RSI has been generating bullish divergence for the past 24 hours. This divergence preceded the bounce from the support line. Furthermore, the low coincides with the 0.786 fib level of the entire upward move, making it a very suitable place to initiate a reversal. Will the LTC price break out of the triangle? In order to answer that, we need to look at a longer-term time-frame.

Descending Support

A look at the daily chart shows that the price has been following a descending support line since March 10. The price touched the support line for the third time on June 27, before beginning an upward move. Additionally, we can see that the low coincided with the 0.786 fib level of the entire upward move. This was also the case in the short-term upward move analyzed in the first section. In both cases, the LTC price began to increase afterward. However, an analysis of moving averages (MA) shows that there is still significant resistance left for the price to clear. On June 20, a bearish cross transpired between the 10- and 20-day MAs. The 10-day MA continued to decrease and crossed below the 200-period one on June 22. The Litecoin price has been trading below all three MAs since. The recent upward move made an unsuccessful attempt at a breakout above the 10-day MA, before decreasing below it again. Analyzing the decrease beginning on June 11, we can see that the retracement has been very small. The previously mentioned upward move barley took the price above the 0.236 fib level. Taking this into account, it is likely that the price will break out of the triangle and increase towards the 0.382 and the 0.5 fib levels at ₿0.0127 and ₿0.0137 respectively.

Summary

The Litecoin price has been trading inside a short-term symmetrical triangle and is following a long-term descending support line. After touching the support line for the third time, it began an upward move. We believe that this move will continue towards the resistance levels outlined above. Do you think the price of LTC will reach the resistance line of the symmetrical triangle? Let us know in the comments below.

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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.