- Litecoin is turning more bullish in the short-term with dip-buyers taking control
- LTC / USD pair is bearish in medium-term and trapped inside a large descending price channel
- Bulls could test the $60.00 level if key trendline resistance on the daily time frame is broken.
Litecoin / USD Short-term price analysis
In the short-term, Litecoin is turning bullish with dip-buyers taking control of the cryptocurrency. The four-hour chart highlights the current battle going on between bulls and bears, with a head and shoulders pattern facing-off against an inverted head and shoulders pattern.
Traders should be cautious until a breakout occurs, both patterns remain valid and the direction of trade surrounding Litecoin in the short-term is still sketchy.
An interesting recent development on the LTC / USD pair is its price-action, which is starting turn more bullish in comparison to other leading cryptocurrencies.
The four-hour time frame chart best illustrates the current battle underway between bulls and bears.
Relative Strength Index
The Relative Strength Index has turned bullish on the four-hour time frame, traders should watch for continued price stabilization above the neutral line for a bullish signal.
The MACD histogram is starting to follow price higher on the mentioned time frame, with the signal line crossing higher.
Litecoin / USD Medium-term price analysis
Litecoin is bearish over the medium-term but is certainly one of the more interesting cryptocurrencies in terms of its potential for a strong upside or downside move over this time horizon.
The LTC / USD pair has been trapped in a descending price channel and has recently moved towards the top of the channel, with bulls ultimately failing to perform a technical breakout. Price is currently consolidating below the upper trendline with dip-buyers still holding up LTC / USD price-action relatively well.
A further technical rejection from the channel or false break is likely to prompt a move toward the channel bottom in the medium-term. The bullish scenario would take Litecoin towards the $60.00 region, judging by the size of the inverted head and shoulder pattern.
The descending channel on the daily time frame is defining the trading action over the medium-term, traders should also be cautious about the potential inverted head and shoulders pattern forming.
The MACD histogram is currently failing to generate a reliable trading signal on the daily time frame.
The Stochastic indicator is approaching oversold territory on the daily time frame; this should be taken as a bearish development as it favors a reversal from the channel top.
Litecoin is showing bullish potential with the daily time frame offering a more reliable gauge of what the likely path of travel for this cryptocurrency is likely to be.
Trading action is certainly becoming more interesting over both time horizons and offers a solid opportunity for either breakout or swing traders.
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