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Litecoin / USD Technical Analysis: Head Above The Water

It holds itself well, and gives a few bullish signals too.

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  • 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.

 

Pattern Watch

The four-hour time frame chart best illustrates the current battle underway between bulls and bears.

 

 

LTC / USD H4 Chart                                                                         (Source: TradingView)

 

 

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.

 

MACD Indicator

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.

 

Pattern Watch

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.

 

 

LTC / USD Daily Chart                                                                         (Source: TradingView)

 

 

MACD Indicator

The MACD histogram is currently failing to generate a reliable trading signal on the daily time frame.

 

Stochastic Indicator

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.


Conclusion

 

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.

 

  • litecoin
  • Litecoin
    (LTC)
  • Price
    $48.48
  • Market Cap
    $2,935,673,925.26

 

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