A look at the Weekly chart for Litecoin shows that the price of LTC/USD is currently trading within the major resistance area found near $50, formed by previous support.
Price is currently trading at $49.6.
The major support area is found at $26-$29.
The RSI has moved upward over the past month and is currently at 50.
After a long period of bullish divergence, the MACD is moving upward with strength but is not positive yet.
Price has finally moved past the 200 period moving averages and is trying to find support above it.
A look at the 3-day chart shows that price is currently above the 21 and 50-period moving averages and within the negative Ichimoku cloud.
The RSI is moving upward with strength, and there is no bearish divergence yet.
After a long period of bullish divergence, the MACD has turned positive.
Furthermore, the 21 and 50-period moving averages are very close to making a bullish cross.
A look at the Daily chart gives us the first signs of short-term weakness.
First, the price has moved past the 200-period moving average and the Ichimoku cloud.
The 21 and 50-period MAs have made a bullish cross and are both moving upward.
The MACD also seems to have rejected a bearish cross.
However, there is significant bearish divergence occurring in both the RSI and the MACD.
The daily timeframe also gives us two minor support areas.
The first one is found near $42 and the second one near $35.
Short-Term Outlook and Price Prediction
A look at the 6-hour shows us an even more pronounced bearish divergence in both the RSI and the MACD, solidifying the conclusions found in the Daily chart.
While there is no clear structure in which price is trading in, it seems like it wants to create a type of double top pattern.
Litecoin Price Prediction:
I believe that price will make a double top pattern and fail to break the resistance area near $50.
During the week, the price will fall back to the support area near $42.
- Price has moved past the 200-day moving average.
- Price is inside the long-term resistance area near $50.
- Price is facing short-term bearish divergence.
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