Is a Bullish Breakout Looming For Litecoin? (LTC/USD Price Analysis for 04/17/19)

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At BeInCrypto, we regular price analyses and predictions for Litecoin (LTC). In our Apr 15 Litecoin (LTC) analysis, we predicted price decreases. Our prediction was almost validated on Apr 16, when the price reached lows close to the support line we defined. At the time of writing, it has yet to reach the support line. To learn more, read our latest analysis below:

On Apr 6, 2019, the price of Litecoin reached a high of $98.80. A gradual decrease followed. Losses accelerated on Apr 10.



LTC/USD Prices: Apr 5 – Apr 15

On Apr 15, Litecoin reached a low of under $75. By Apr 16, highs over $82 were reached. At the time of writing, however, Litecoin was trading slightly above $80.

Will this most recent dip bring prices back below the $80 threshold?



Let’s find out:

Litecoin (LTC): Trends And Highlights For April 17, 2019

  • The price of LTC/USD has been on a downtrend since Apr 6.
  • Litecoin is trading inside a descending wedge.
  • Bullish divergence is developing in the RSI and the MACD.
  • There is resistance near $92.

Descending Wedge

The price of LTC/USD on Bitfinex was analyzed at two-hour intervals from Apr 5 to Apr 17 to determine the current trading pattern.

On Apr 6, the price reached a high of $98.80. Several market cycles have been completed and the price has made lower highs each time.

Tracing these highs gives us a descending resistance line:

On Apr 4, the price reached a low of $81.30. A gradual increase was followed by a gradual decrease. The price has made several lower lows. Tracing these lows gives us a descending support line.

The support and resistance lines combine to create a descending wedge:

The price is likely to trade inside the confines of the wedge until a decisive move occurs.

In order to predict the direction of the move, we need to take a look at previous movements combined with technical indicators.

Previous Breakdown

We begin by incorporating the MACD and the RSI.

The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.

The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
Combining MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. These are traced below alongside price:

On Apr 11, the price reached a low of $75.53. It made a lower low of $74.72 on Apr 15.

Similarly, the RSI and the MACD reached the first low on Apr 11. However, they have proceeded to generate higher values since.

This is known as bullish divergence and often precedes price increases. Furthermore, it is occurring on the support line of a bullish pattern.

Using these indicators, it is likely that the price will break out of the wedge. However, it is possible that it drops towards the support line before eventually breaking out. 

Future Movement

Resistance areas are formed when the price reaches a certain level several times. In the case of a breakout/breakdown, they can provide likely areas of reversal.
These are shown in the chart below:

The closest resistance area is found near $92. If the price breaks out of the wedge, it is likely to reach this area. We believe this to be likely.

Summary Of Analysis

Based on this analysis, it is likely that the price break out of the wedge and reach the resistance area at $92.

Do you think the price of LTC will break out from the wedge?  Let us know 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.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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