Litecoin maintains its position above a crucial support level as it continues its upward trend. Since June 2022, the price of LTC has steadily risen along an ascending support line, being successfully tested six times, with the most recent test occurring last week. Additionally, the price rebound encountered a horizontal area that has alternated between resistance and support for over 600 days.
Nevertheless, the weekly relative strength index (RSI) suggests a bearish stance, as it is below the neutral level of 50 and declining, indicating a downtrend. Analysts and traders on Platform X have expressed mixed views on Litecoin’s prospects.
Matthew Dixon takes a bullish stance, anticipating price growth to reach 85. He suggests caution ahead of the FOMC rate decision, as it can likely determine the direction of all markets, including LTC and BTC.
On the other hand, trader Valeriya has a bearish outlook due to a recent short-term bearish breakout, expecting a decline in the price soon.
The daily timeframe also leans towards a bearish sentiment due to price action and RSI signals. LTC has been trading within an ascending parallel channel since September 2023, which typically contains corrective movements and often concludes with a bearish breakout. Additionally, the price of Litecoin has been following a descending resistance line since its rebound from the channel border on December 9, 2023.
Moreover, the daily RSI is below 50 and declining, further indicating a bearish trend. Should LTC experience a bearish breakout from the channel, it could potentially drop by 25% towards the nearest support at $50.
Despite this bearish outlook, a break of the short-term resistance line could trigger a 20% rise in Litecoin, leading it towards the upper boundary of the channel at $80.
As always, it is important to note that all information provided is for informational purposes only and readers should exercise caution and take full responsibility for any actions based on the information received.
Source: TradingView