Litecoin Price Signals More Consolidation on the Horizon – LTC/USD Outlook
LTC/USD Price Technical Outlook
On Tuesday, Litecoin rallied to an over four-week high at $49.90 yet the price pulled back later as some bulls seemed to cut back. Therefore, the weekly candlestick closed with a Doji candlestick reflecting the market’s indecision at this stage.
This week, the Relative Strength Index (RSI) remained flat above 50 highlighting a paused bullish momentum.
Litecoin PRICE DAILY CHART (FEB 7, 2019 – June 8, 2020) Zoomed Out
Litecoin PRICE DAILY CHART (March 12 – June 8, 2020) Zoomed In
In late April, Litecoin failed to rally to the higher trading zone signaling that bulls were losing momentum. Later on, the price traded in a sideways move creating a set of lower highs with higher lows. Last week, the price rebounded around the high end of the current trading zone $35.92- $50.20 yet remained above the 50-day moving average,indicating that bulls may retake the initiative.
Hence, any successful close above the high end of the aforementioned trading zone may trigger a rally towards $60.20, and a further close above that level may extend the rally towards $74.55.
On the flip-side, any close below the 50-DMA signals that LTC/USD could fall towards the low end of the zone, and a further close below that level may send the price even lower towards $22.30.
That said, the daily and weekly support and resistance levels marked on the daily chart should be kept in focus in both scenarios.
Litecoin PRICE FOUR Hour CHART (April 21 – June 8, 2020)
On May 27, the price broke above the downtrend line originated from the May 18 high at $47.00 and generated a bullish signal. Yesterday, the market broke below the uptrend line originated from the May 26 low at 41.8 then remained below this line producing a bearish signal.
Thus, a break below $43.70 could send LTC/USD towards the $40.00 handle. On the other hand, any break above $51.92 may cause a rally towards $55.90. Nonetheless, the daily support and resistance levels underlined on the four-hour chart should be watched closely.
Written By: Mahmoud Alkudsi,Market Analyst
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.