A look at the Weekly chart for Litecoin shows that price is currently forming a bullish engulfing weekly candle.
Price is currently trading at $44 after briefly touching the resistance near $50 and retracing.
The price is facing resistance from the moving averages, most notably the 200-period MA (white) and trading below all the other MAs.
After a long period of bullish divergence, the MACD is moving upward with strength, possibly wanting to turn positive for the first time in more than a year.
The RSI is at 47 and moving upward with strength.
It is worth keeping an eye on if the weekly candle closes above or below the 200-period MA.
A look at the 3-day chart shows us that price is also facing resistance from the edge of the Ichimoku cloud, which coincides with the $50 area of resistance.
Price is trading below the 50 and 200-period MAs.
However, the MACD is moving upward with strength and is almost positive.
A look at the Daily chart shows that price has reversed after touching the 200-period MA, forming a long wick in the process, indicating that there is still a lot of selling power.
However, the Ichimoku cloud is positive for the first time in more than six months, and the price is trading above the 7, 21 and 50-period MAs.
The closest support area is formed by the previous resistance near $40.
Short-Term Outlook and Price Prediction
A look at the 2-hour chart shows signs of short-term weakness.
After a bullish candlestick with a long upper wick, the price has developed very significant bearish divergence in the RSI, and the MACD is close to making a bearish cross.
Even though I am bullish on Litecoin in the long-term, I believe that the upward move has lost most of its power, and during the next week, the price will retrace to the area of support near $41.
- The weekly candle is a bullish engulfing candle.
- Price faces significant resistance from long-term moving averages.
- There is short-term bearish divergence.