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Litecoin Price Analysis LTC / USD: Preparing For Hibernation

Litecoin has shifted its dynamic and starts posting lower highs and lows.

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  • Litecoin has a bearish short-term trading bias, with cryptocurrency appearing increasing weak below its 200-period moving average on the four-hour time frame
  • The four-hour time frame is showing that a bearish head and shoulders pattern has formed
  • The daily time frame highlights that the LTC / USD pair is now making lower highs and lower lows

Litecoin / USD Short-term price analysis

Litecoin has a bearish short-term trading outlook, with the LTC / USD pair appearing increasingly weak below its 200-period moving average on the four-hour time frame.

The four-hour time frame is showing that the recent decline in the cryptocurrency has helped to create a large head and shoulders pattern, with the LTC / USD pair hovering around neckline support.

Technical indicators on the four-hour time frame are bearish and continue to provide a strong sell signal.

LTC H4 Chart July 1, powered by Trading View
LTC / USD H4 Chart by TradingView

Pattern Watch

Traders should note that the bearish head and shoulders pattern on the four-hour time frame has a downside projection of around $40.00. 

Relative Strength Index

The Relative Strength indicator on the four-hour time frame is bearish and is now trading in oversold territory.

MACD Indicator

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The MACD indicator is bearish on the four-hour time frame and continues to generate a clear sell signal.


Litecoin / USD Medium-term price analysis

Litecoin has a bullish medium-term trading bias, with the cryptocurrency still trading well above its trend-defining 200-period moving average.

The daily time frame shows that a technical shift has now occurred, with the cryptocurrency now creating bearish lower highs and lower lows. Key technical support for the LTC / USD pair is currently found at the $100.00 and $84.00 levels.

Technical indicators are turning lower and continue to issue a bearish trading signal on the daily time frame.

LTC Daily Chart July 1, powered by Trading View
LTC / USD Daily Chart by TradingView

                                                                                

Pattern Watch

Traders should note that a bearish triple-top pattern formation is also in play on the daily time frame. 

Relative Strength Index

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The Relative Strength indicator on the daily time frame is turning lower and continues to generate a bearish trading signal.

MACD Indicator

The MACD indicator is bearish on the daily time frame, with both the MACD signal line and histogram issuing a sell signal.


Conclusion

Litecoin is undergoing technical selling back towards the $100.00 support level, with the bearish pattern on the four-hour time frame pointing to a potential drop towards the $60.00 level.

The dynamics have also shifted on the daily time frame, which may place the LTC / USD pair’s 200-day moving average back in focus over the medium-term.

Check out our coin guide for an introduction to Litecoin.

We also wrote a DARE for the project, analyzing the future prospects of the Bitcoin competitor.

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