Litecoin returned to support
The weekly timeframe shows that LTC price peaked at $115 in July 2023 and has been declining since then. As a result, in August it sank to a minimum of $56.
After a brief bounce and subsequent decline, Litecoin formed an increasing low (green icon) last week.
The price rebound confirmed as support the long-term ascending trend line that has existed since June 2022, and the horizontal area that has alternated between supporting and resisting.
Source: TradingView
The weekly momentum indicator RSI is at a neutral level of 50, indicating an undecided trend.
What analysts say
Cryptocurrency traders and analysts on Platform X are divided on the prospects for LTC.
Joao Devesa believes that the price will soon rise significantly due to a potential bullish breakout from the long-term pattern:
Weekly chart LTC/USDT. Source: X
However, Diamond Hands is bearish. He noted two ascending parallel channels, bearish breakouts of which would likely trigger a decline.
LTC Forecast: Will There Be a Reversal?
Like the weekly timeframe, the 2-day chart cannot confirm the trend direction. However, Elliott wave analysis suggests that, according to the most likely scenario, starting from June 2022, the price has completed a five-wave upward movement and an ABC correction structure.
If this is indeed the case, then Litecoin launched another upward movement in September 2023 (white). If these bullish structures have the same length, LTC will rise by 80% and reach the next resistance at $122.
Source: TradingView
On the downside, engulfing the September 2023 low at $57.30 (red) would invalidate the bullish forecast. In this case, LTC could fall by 30% to the nearest support at $48.
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