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Litecoin (LTC) Support Holds Firm – What’s Driving Its Resilience?

2 mins
Updated by Ryan James
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In Brief

  • Litecoin's price has bounced at support numerous times since August 2023. Each bounce has been weaker than the last.
  • While the weekly time frame readings are undetermined, the daily time frame chart suggests that a breakdown is likely.
  • Despite the bearish Litecoin price prediction, a breakout from the short-term resistance trend line can cause a bounce.
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The Litecoin (LTC) price has consolidated above a long-term support level since August 2023.

Litecoin trades in a short-term corrective pattern and descending resistance trend line. Will it break down from them, or will it bounce at the long-term support level instead?

Litecoin Trades Above Support

The weekly time frame outlook shows that LTC has increased alongside an ascending support trend line since June 2022. The trend line has been validated numerous times (green icons).

Initially, the bounces triggered significant upward movements. However, they have been much smaller recently. Two weeks ago, Litecoin bounced at the support trend line and has already returned to it. 

The long-term ascending support trend line has existed for 610 days and coincides with a horizontal support area.

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

The weekly Relative Strength Index (RS) gives a mixed reading. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. While the indicator is increasing, it is still below 50 (red circle), indicating an undetermined trend.

What Are Analysts Saying?

Cryptocurrency traders and analysts on X positively view the future LTC trend. 

Master believes that LTC will be above $5,000 by the end of the year, using a previous fractal to come to the prediction.

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

TJCrypto believes the price is consolidating in anticipation of an upward movement. After the Solana network went down, RoboTrader had this to say:

meanwhile Litecoin has never ever been down in its entire existence from 2011 #LTC $LTC

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

LTC Price Prediction: Will Breakdown Occur?

The technical analysis of the daily time frame suggests a breakdown is expected because of the bearish price action.

The chart shows LTC has traded in an ascending parallel channel since September 2023. These channels usually contain corrective movements, meaning a breakdown is expected.

Furthermore, LTC trades in the channel’s lower portion and follows a descending resistance trend line. As a result, a breakdown from the channel is the most likely future price scenario.

The daily RSI aligns with this scenario since the indicator faces resistance from 50 (red circle).

LTC can fall by nearly 27% to the closest support area at $50 if a breakdown occurs.

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

Despite this bearish LTC price prediction, a breakout from the descending resistance trend line can trigger a 20% increase to the ascending resistance trend line at $82.

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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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