On July 16, 2019, the Litecoin (LTC) price reached a low of ₿0.00799 before an upward move ensued. LTC has been trading between ₿0.0098 and ₿0.0090 since.
Will Litecoin reach ₿0.01? Keep scrolling if you want to find out!
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Litecoin Price: Trends and Highlights for July 25
- LTC/BTC broke out from a descending wedge.
- It is following a long-term descending support line.
- Technical indicators are bullish.
- There is resistance between ₿0.0096 and ₿0.0098.
- There is support at ₿0.009
Previous Movement
A closer look reveals that the Litecoin price traded inside a descending wedge during the period of July 28 to 24.
On July 24, a breakout ensued. It transpired with slightly above-average volume.
Afterwards, the price decreased and touched the resistance line. and has been increasing since.
Descending Support
A look at the daily chart shows that the LTC price has been following a descending support line since April 2019. The period discussed in the previous section is highlighted below.
A closer look shows that the price is trading inside a very significant resistance area for the past nine days.
So far it has made three attempts at a breakout, all unsuccessful.
However, yesterday’s closing price was the highest reached during this period.
Will LTC finally break out?
Technical Indicators
A look at the RSI shows that this upward move was preceded by a bullish divergence.
The significant bullish divergence was visible during the lower lows of June 24 and July 5.
Furthermore, the relation of the price to its moving averages (MA) is at a critical point.
A bullish cross is about to occur between the MAs. The same is true for the MACD, increasing the significance of the cross.
Additionally, the recent increase took the price above the resistance provided by both.
These indicators suggest that it is likely that LTC will break out above the resistance.
Short-Term Weakness
A look at the RSI shows that the recent upward move lacked significant momentum.
A bearish divergence was visible during the two higher highs reached on July 18 and 24 respectively.
Therefore, we believe that the LTC price will retrace slightly before attempting another breakout.
If it does, the closest support area is found at ₿0.0090
Summary
The Litecoin price is trading inside a significant resistance area. According to our analysis, the price will eventually break out above this area. However, a short-term decrease looks likely. Do you think Litecoin will reach ₿0.01? Let us 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 TradingView.
