Litecoin is trading above its long-term support level, which is 600 days old. Although the asset has not yet shown significant growth, lower timeframes are giving a number of green signals. This time, yesterday LTC bounced off minor support but fell short of a more important level.
Will Litecoin (LTC) settle above the support line?
The weekly timeframe shows that the LTC price has been rising along an ascending support line for almost 600 days.
source: coinmarketcap.com
Currently, the trend line also coincides with the horizontal support area. EDX, backed by major institutions, expands its Asian presence, announced by the Litecoin team. In August 2023, the price began to rebound, but was unable to consolidate it.
EDX, an Institutional exchange backed by some of the biggest names in finance, is expanding into Asia! EDX currently supports trading activities for only three cryptocurrencies, including #Litecoin ⚡ $LTC https://t.co/p05ovFNiXe
— Litecoin (@litecoin) January 23, 2024
The weekly relative strength index (RSI) is giving negative signals. It is below the neutral level of 50 and declining, indicating a bearish trend.
LTC Forecast: will the price be able to consolidate the rebound?
The picture on the six-hour timeframe suggests that the token is likely to make a bearish breakout. Price dynamics show that LTC has been declining below the descending resistance line since December 2023.
The last bounce from this line occurred on January 12 and resulted in a bearish breakout of the $68 horizontal area. However, Yesterday, Litecoin bounced off the horizontal support area at $63.50 and today it went up to $65.58.
Additionally, the 6-hour RSI is showing bearish signs as it made a downside breakout of the bullish divergence trendline, and that breakout preceded the previous bounce. If the price breaks below $63.50, it could fall 8% to the next closest support level at $60.50.
Despite this bearish outlook, a recovery in LTC above the $68 area could trigger a 12% rally towards the resistance line at $73.
About Lightcoin (LTC)
Litecoin (LTC) is a decentralized peer-to-peer cryptocurrency with a public code, operating on the blockchain of the same name. It is a fork of Bitcoin and was created as a virtual architecture that solves the problems of the first digital coin, and not a competitor to the “legendary” Bitcoin.
The LTC cryptocurrency solved the problem of high fees thanks to the introduction of the innovative development of the Lightning Network – an additional blockchain located on top of the main blockchain. In the fall of 2017, without the intervention of intermediaries in the form of online exchangers and cryptocurrency exchanges, an exchange was carried out between different chains: Litecoin and Decred.
During this period, the workload of the cue ball was unprecedented; it was necessary to give up to 40% of the total transfer amount, and that’s in order for the transaction to quickly go to its destination.
