Litecoin has seen steady prices increases throughout 2019. On Apr 2, these accelerated as part of a market-wide spike. By Apr 3, Litecoin reached a high of $99.43.
A rapid decline was followed by a gradual increase. On Apr 6, another attempt at $100 was made when Litecoin reached a high of $98.80.
Prices have since dropped to under $90:
Will Litecoin make another attempt at $100 or will price drop further?
Litecoin (LTC): Trends And Highlights For April 9, 2019
- The price of LTC/USD has been on a downtrend since Apr 6.
- Litecoin is trading inside a symmetrical triangle.
- Bullish divergence is developing in the RSI.
- There is resistance near $98 and support near $78.
The price of LTC/USD on Bitfinex was analyzed at one-hour intervals from Apr 2 to Apr 9.
On Apr 3, the price reached an hourly low of $78.3. Several market cycles have been completed and the price has made a higher low each time.
Tracing these lows gives us an ascending support line:
On Apr 6, the price reached a high of $98.8. Since, it has been on a gradual decrease, with each high being lower than the previous one.
Tracing these highs gives us a descending resistance line.
The support and resistance lines combine to create a symmetrical triangle:
Litecoin has been trading within this pattern and is expected to continue doing so until a decisive upward or downward move occurs.
What will be the direction of this move?
In order to answer that question, we need to take a look at technical indicators.
To determine future price movements, we incorporate RSI and MACD into our analysis
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
On Apr 8, the price made an hourly low of $87.0. It made a lower low of $84.2 on Apr 9.
Similarly, the RSI and the MACD made the first low on Apr 8. However, they have proceeded to generate higher values since.
This is known as bullish divergence and often precedes price increases.
Using these indicators, it is likely that the price heads towards the resistance line of the triangle.
To determine possible future price levels, we incorporate resistance and support areas into this analysis.
The closest resistance area is found near $98. If the price breaks out of the triangle, it is likely to provide a reversal area. Based on the analysis in our previous section, this scenario is possible.
The closest support area is found near $78. If the price were to break down from the triangle, it would provide a likely reversal area.
However, it is worth mentioning that there is a significant bearish divergence occurring in longer timeframes.
Therefore, we expect a price decrease during the upcoming weeks despite the fact that a breakout from the symmetrical triangle remains likely in the short-term.
Summary Of Analysis
Based on this analysis, it is likely that the price keeps trading inside the symmetrical triangle. However, prices are expected to rise, and a breakout may be possible.
This could lead to prices of $100; however, price may reach the $98 range a third time before. It is unclear if the next uptrend will bring Litecoin to $100 or not.
Do you think the price of LTC will keep increasing? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.