Litecoin [LTC] Price Analysis: Will The Ascending Support Line Hold Up The Price?

Litecoin price analysis
Source: TradingView

Litecoin [LTC] Price Analysis: Will The Ascending Support Line Hold Up The Price?

The price of Litecoin reached a high of $54, before making a double top pattern combined with a bearish divergence in both the RSI and the MACD and dropping quickly to the ascending support line that has been in place for roughly 19 days. Currently, price is trading inside a symmetrical triangle. After the most recent drop, the price has developed bullish divergence and has started to retrace upward. There are minor resistance areas near $47 and $48.

Key Highlights

  • There is significant support at $42
  • There is significant resistance at $50.
  • Price is trading inside a symmetrical triangle.
  • There is short-term bullish divergence developing.

Litecoin Analysis – LTC/USD – 2-Hours Chart

A look at the 2-hour chart shows that the price made a double bottom at $54 before breaking down and falling all the way to the support line. The support line has been in place for roughly 19 days and has been validated five times. We can also see that price is possible following a descending resistance line (dashed) which has however only been validated three times. Combined with the support line, it makes a symmetrical triangle. If the support line fails to hold up price, the next support area will be found near $42.

As for the indicators, the price is trading below the 21, 50 and 200-period moving averages, which are in the process of making multiple bearish crosses. The RSI is currently at 29, indicating oversold conditions. The MACD is in negative territory, has made a bearish cross and is falling sharply.

Litecoin Analysis – LTC/USD – 15-Minutes Chart

Litecoin Price Analysis
Chart Source: Tradingview Bitfinex

A look at the 15-minutes chart shows that the breakdown occurred in a significant volume alongside a bearish engulfing candle. Furthermore, we have two minor resistance areas, one at $47-$47.2 and the other near $48. The price bounced right on the support line and has started to retrace.

As for the indicators, the price is trading above the 21-period moving average, but below the 50 and 200-period MA. The RSI is at 50, but there has been significant bullish divergence developing. Finally, the MACD has made a bullish cross and is moving upward, but it is not positive yet.

Summary
Litecoin [LTC] Price Analysis: Will The Ascending Support Line Hold Up The Price?
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Litecoin [LTC] Price Analysis: Will The Ascending Support Line Hold Up The Price?
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The price of Litecoin reached a high of $54, before making a double top pattern combined with a bearish divergence in both the RSI and the MACD and dropping quickly to the ascending support line that has been in place for roughly 19 days. Currently, price is trading inside a symmetrical triangle. After the most recent drop, the price has developed bullish divergence and has started to retrace upward. There are minor resistance areas near $47 and $48.
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Author: Valdrin Tahiri

Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]

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Valdrin Tahiri 35 Articles

Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]