Long-Term Outlook
Litecoin Weekly Chart – Source: Tradingview.com
A look at the Weekly chart for Litecoin in logarithmic form shows that price has seemingly found support above the 200-period MA and is trading at $45.
Price is trading slightly below the resistance area near $50 and the 50-period MA/Ichimoku cloud.
If price breaks out above the resistance area, the next one can be found near $80.
Conversely, the major support area formed by the highs of 2014 is found near $30.
The RSI is at 43, indicating neither overbought nor oversold conditions.
The MACD is moving up with strength and is almost positive.
Given this information, I am bullish in the long-term.
Medium-Term Outlook
Litecoin 3-Day Chart – Source: Tradingview.com
A look at the 3-day chart shows that even though it has moved past the 21/50-period moving averages, the price is struggling to break through the negative Ichimoku cloud.
Furthermore, while the previous 3-day candle was a doji, the current one is a bearish engulfing candle.
Also, the MACD is losing strength, possibly setting itself up for a bearish cross.
On a more positive note, it looks like the 21 and 50-period moving averages are going to make a bullish cross and possibly offer support to price.
Litecoin Daily Chart – Source: Tradingview.com
A look at the Daily chart shows that price is following an ascending support line which has been in place for 73 days.
We can also clearly see that price made a double top pattern combined with a bearish divergence in the RSI.
On a more positive note, the price is trading above all moving averages.
Given the information from the 3-day and the daily chart, I am bearish in the medium-term.
Short-Term Outlook and Price Prediction
Litecoin 6-Hour Chart – Source: Tradingview.com
A look at the 6-hour chart shows an even more pronounced bearish divergence in the RSI.
Furthermore, the MACD is negative.
The 6-hour chart gives us a minor support area near $41 and shows that price is possibly following an ascending support line.
However, the line has only been validated twice.
Litecoin Price Prediction:
I believe that during this week price will break down from the support line, and head for the minor support area at $41, possibly even lower.
Conclusions:
- Price made a double top pattern.
- There is medium and short-term bearish divergence.
- Price is trading above the 200-week moving average.
Latest Litecoin News:
| DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset. |
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