Will Litecoin settle above the support line?
The weekly timeframe demonstrates that the LTC price has been gradually increasing alongside an ascending support line for nearly 600 days. This trend line has gone through numerous tests (green icons), with the most recent one occurring this week.
At present, the trend line also aligns with the horizontal support area.
In August 2023, the price experienced a rebound but failed to consolidate it and approached the support line once again.
The Litecoin team recently made an announcement that EDX, an institutional exchange supported by major financial players, is expanding its presence in Asia. EDX facilitates trading of Bitcoin, Ethereum, and Litecoin.
Source: TradingView
The weekly relative strength index (RSI) is indicating negative signals. It currently sits below the neutral level of 50 and is declining (red circle), suggesting a bearish trend.
LTC forecast: will the price be able to consolidate the rebound?
The pattern observed on the six-hour timeframe indicates that the token is likely to experience a bearish breakout of its long-term support.
Price movements reveal that LTC has been declining beneath the descending resistance line since December 2023. The most recent rebound from this line (red icon) occurred on January 12 and resulted in a bearish breakout of the horizontal area at $68.
Yesterday, Litecoin rebounded off the horizontal support area at $63.50. However, this level is insignificant compared to the $68 threshold.
Furthermore, the 6-hour RSI is displaying bearish signs as it underwent a downside breakout of the bullish divergence trendline (green) that preceded the previous rebound. If the price breaks below $63.50, it could potentially drop by 8% to the nearest support level at $60.50.
Source: TradingView
Despite this bearish outlook, a recovery in LTC above the $68 area could trigger a 12% rally towards the resistance line at $73.
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