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.
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.
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
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.
- 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:
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