- There is significant support at $51
- There is minor support at $55
- There is significant resistance at $61.
- Price is trading inside an ascending horizontal channel.
- There is strong medium-term bearish divergence developing.
The price of Litecoin reached a high of $52, on February 8 and has continued to make higher highs since, culminating in $60.5 on March 10. The price is currently following a trading structure, that of an ascending parallel channel which is a neutral pattern. The resistance line is currently at $61 while the support line is at $52. There is also a minor support area near $55. The price has generated very significant bearish divergence in the RSI and the MACD and is trading below the medium-term moving averages.
Litecoin Analysis – LTC/USD – 2-Hours Chart
Chart Source: Tradingview, Bitfinex
A look at the 2-hour chart shows that the price is currently trading close to $60, touching the resistance line of the channel that has been in place for roughly 32 days and has been validated seven times. The price has also been following an ascending support line which has been validated five times. Both the lines combine to create an ascending parallel channel
As for the indicators, the price is trading below the 21 and 50-period moving averages which have made a bearish cross and are offering close resistance to the price. The RSI is currently at 55, indicating neither overbought nor oversold conditions. There is some bearish divergence currently developing. The MACD has lost almost all of its power and has made a bearish cross. Furthermore, it has crossed into negative territory.
Litecoin Analysis – LTC/USD – 30-Minutes Chart
Chart Source: Tradingview Bitfinex
A look at the 30-minutes chart shows that the price has been following a descending resistance line which has been touched three times since March 10. It is currently right on the line. After being rejected for the 2nd time, it made a temporary bottom near $53 before starting a rapid move upwards to go to the line again. The $55 level acts as a minor support area.
As for the indicators, we can see that the MACD is very close to making a bearish cross and has lost all of its power. Similarly, the RSI was in overbought territory for a short period of time, before creating some bearish divergence and falling down. It is currently at 59.
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]