Litecoin formed a bearish candle
The weekly timeframe shows that the LTC price has been declining since April 2021 along a descending resistance line.
In June 2023, the token rose above this trend line, but failed to develop an upward movement. In the end, this turned out to be only a deviation (red circle) with a subsequent decrease.
In October, LTC broke through the trend line (green icon) again, but failed to continue to rise. Last week, the asset formed a bearish engulfing candle.
Source: TradingView
The current value of the RSI momentum indicator is 50, which is a sign of an undefined trend.
What analysts say
Cryptocurrency traders and analysts on Platform X are optimistic about LTC’s prospects.
Thus, World Of Charts believes that the price will rise to $300 after a bullish breakout from the long-term pattern.
Weekly chart LTC/USDT. Source: X
Joao Devesa is also positive and believes LTC will outperform BTC:
“My predictions for the #Litecoin price in the coming months. Conservative target 0.0125 at $100k per Bitcoin: $LTC = $1250. Aggressive target 0.025 at $250 thousand per Bitcoin: #LTC = $6250. This is where Litecoin should be during the next bull market.”
LTC Forecast: Is a Correction Coming?
The daily timeframe reflects a bearish outlook for LTC. Although the price of the asset has increased since August 17, its dynamics have been contained within an ascending parallel channel.
These patterns are often associated with corrective movements.. This means that eventually the price will most likely break through its lower boundary.. This scenario is also supported by the fact that on December 9, the coin rebounded from the Fibonacci correction level of 0.382 (red icon) and is trading below the middle line of the channel.
Daily RSI is also giving bearish signals. It has broken through the ascending support line (green) and is now below the neutral level of 50. Both of these signs indicate a bearish trend.
If LTC breaks out, it could fall 20% to immediate support at $58.
Source: TradingView
A break through the upper boundary of the channel, in turn, could provoke a price increase of 30% to the Fibonacci resistance level of 0.618 at $92.
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