Altcoin Litecoin does not determine the direction of the trend

Altcoin Litecoin (LTC) tested an important support, but soon returned beyond it. In the short – and medium-term perspective, an upturn is expected, but the overall picture points to the emergence of bearish momentum

Confirmation of the support status

The Litecoin exchange rate has been falling since August 17, when the price touched the level of $68.94. The local minimum reached on September 21 was fixed at $41.66.

The key support and resistance levels are at $48 and $64, respectively. Also, a minor barrier is expected in the region of $54.

After a short-term decline, the quotes returned beyond the support of $48, and while the cryptocurrency is held above this level, it is expected to continue to rise in the direction of the $54 mark and, possibly, the $63 level.

LTC chart. Source: TradingView

Technical indicators on the daily chart paint a bullish picture:

* MACD rises in positive territory
* The RSI is rising above the 50 level
* The stochastic oscillator has formed a bullish intersection and is moving in a northerly direction.

All this speaks in favor of strengthening the altcoin to the $54 mark with its potential excess. To determine more accurate prospects, it is necessary to analyze short-term charts.

LTC chart. Source: TradingView

Raid on the resistance

The 6-hour chart shows that the price is testing the intermediate resistance of $51, above which the altcoin has not risen since September 5. This is the third attempt to break through this zone.

At the same time, the MACD is declining, and the RSI is giving signals of bearish divergence, which indicates the prospects of a decline to the $48 mark before a possible upward breakout.
In addition to the horizontal levels, there are no pronounced price patterns on the charts.

LTC chart. Source: TradingView

Wave analysis

Cryptocurrency trader @TheEWguy shared on Twitter a chart of LTC, which notes a long-term bearish wave structure, which, in his opinion, can eventually send the cryptocurrency rate to the $9 mark.

Source: Twitter

In the LTC analysis of September 19, the editorial board of BeInCrypto wrote that if the analysis is correct, the current movement may represent a sub-wave 4, after which the price will decline again.

The quotes actually declined, reaching the aforementioned low of $41.66 on September 21 and completing wave 5 (blue color on the chart below). At this stage, it is still too early to predict the collapse of the altcoin to the $9 mark, but, apparently, the price has begun to form an impulsive bearish wave structure after reaching a maximum on August 17 (marked in red).

Before that, LTC seems to have completed the A-B-C correction (black), which also speaks in favor of the emergence of a bearish momentum.

LTC chart. Source: TradingView

If so, Litecoin has started a correction A-B-C (blue color), which should end near the previously mentioned resistance of $54.

This level coincides with the 0.5% Fibonacci retracement level relative to the bearish move and the 1.61% pullback level relative to the length of wave A. After that, a decline seems to be the most likely scenario.

LTC chart. Source: TradingView

So, LTC may rise to the $54 mark and even exceed it, but the longer-term picture speaks in favor of a bearish move.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forward-looking statement do not reflect those of the BeInCrypto editorial board.

Disclaimer


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