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Litecoin (LTC) Price Starts to Run out of Steam

2 mins
Updated by Geraint Price
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In Brief

  • Litecoin broke out from an ascending parallel channel.
  • There is resistance at $130.
  • LTC is following an ascending support line.
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The Litecoin (LTC) price is in the process of validating a resistance line from which it broke out. The trend can be considered bullish if the price does not close below $79.

The Litecoin price had increased inside an ascending parallel channel since the beginning of May 2022. While such channels usually contain corrective movements, the LTC price managed to break out on Jan. 11, 2023. This is typically a sign that the upward movement is impulsive. 

Moreover, the daily RSI broke out from its bearish divergence trend line and is now moving upward. 

Currently, the Litecoin price is in the process of validating the channel’s resistance line as support (green icon). If it is successful, the next resistance would be at $130. On the other hand, a decrease below the channel’s resistance line would indicate that the breakout was not legitimate and new lows will follow.

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

Litecoin Price Could Re-Test $79 Support

The six-hour chart shows that the LTC price has followed an ascending support line since Nov. 9. It validated the line on Dec. 29 (green icon) and accelerated its rate of increase afterward. Moreover, it shows that Litecoin broke out from the $79 resistance area. 

Despite the increase, the six-hour RSI shows signs of weakness in the form of bearish divergence (green line). As a result, it may return to re-test the $79 area as support. The area will soon coincide with the ascending support line. 

Due to this confluence, the Litecoin price trend remains bullish as long as it does not close below the $79 confluence of support levels.

Litecoin (LTC) Short-Term Breakout
LTC/USDT Six-Hour Chart. Source: TradingView

LTC/BTC Creates Bearish Pattern

While the LTC/USD pair looks bullish, the same cannot be said about LTC/BTC. The price has created a double top, which is considered a bearish pattern. Moreover, the pattern has been combined with bearish divergence in the RSI (green line). 

As a result, a downward movement toward the ₿0.0038 or ₿0.0034 support levels is the most likely scenario. 

Increasing above the second top high of ₿0.0047 would invalidate this bearish price projection.

Litecoin (LTC) Price Double Top
LTC/BTC Daily Chart. Source: TradingView

To conclude, the LTC/USD price trend is bullish as long as the price does not close below $79. On the other hand, the LTC/BTC price is expected to retrace due to the creation of a bearish pattern.

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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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