The Litecoin (LTC) price is at a crucial juncture, testing short-term support after failing to sustain a breakout above a long-term horizontal level. Traders and analysts are closely monitoring the charts, attempting to discern whether LTC will experience a bounce at the current support or undergo a breakdown. Let’s delve into the key technical factors influencing the Litecoin price movement.
In the weekly timeframe analysis, LTC’s price trajectory has been marked by fluctuations around a downward resistance trend line since April 2021. A recent breakout in October led to optimism, but subsequent price movements have shown challenges in maintaining upward momentum. The Relative Strength Index (RSI), a momentum indicator, currently stands at 50, indicating an undetermined trend.
Analysts on X are expressing bullish sentiments for Litecoin’s future price trend. Notably, Xero Crypto highlights the Grayscale Litecoin trust’s valuation, suggesting that the LTC spot price is poised to catch up. Additionally, JoaoDevesa anticipates LTC outperforming Bitcoin (BTC) due to a breakout from a descending wedge pattern.
On the daily timeframe, the LTC price has recently deviated above the $76 horizontal resistance area but failed to sustain the increase. As of December 9, it is approaching the $68 support, where the reaction will likely determine the cryptocurrency’s future trend.
The RSI on the daily chart is at 50, providing an undetermined reading. A breakdown below $68 could result in an 18% decrease to the next support at $58. Conversely, a bounce and breakout above $76 may lead to a 30% increase, with the next resistance at $92.50.
The Litecoin price’s response to the critical $68 support will be closely watched by market participants, influencing the cryptocurrency’s trajectory in the near term. As the cryptocurrency market remains dynamic, traders and investors continue to assess technical indicators and analyst predictions to make informed decisions amid the evolving price landscape.
