After a negative performance since August as expected, the general market decline has made it easier for bears. Now, as the Bitcoin price continues to struggle around the $27,000 region, popular altcoins are gaining momentum. This week, although the expected macro data came out positive, the interest in cryptocurrencies remains indifferent.
Today’s PCE data was in line with expectations and showed a decrease compared to the previous month. Investors are unable to respond strongly to good data due to various negatives, including the ongoing risk of tightening by the Fed. While the cumulative volume of cryptocurrencies remains at $30 billion, some altcoins have experienced exceptional gains. So, what’s next for Litecoin?
The LTC price has been showing a tendency for negative performance after the halving and we have been sharing this expectation since June and July. The price is now 50% below the July peak. The decline caused the long-term rising support trendline to break and pulled the price towards the $64 long-term support.
The price, which has lost 50% in 42 days, also broke a rising support trendline that has been in place since June 2022. Such breaks in long-term structures indicate the completion of the previous move and the start of a new move in the opposite direction.
Since the lowest level in August, the LTC price has been in a horizontal support zone of $63. This zone served as resistance in the second half of 2022. The weekly RSI indicates the continuation of current negativity and a decline.
Contrary to the readings on the weekly chart, there is an expectation of an upward movement for several reasons on the daily chart. The first reason is the double bottom formation, which is generally considered as a precursor to a bullish move and is confirmed by the rise divergence in RSI.
If the upward movement continues, we may see the previous rising support line being reclaimed. At the time of writing, this line was at $80. However, we may observe the invalidation of the double bottom formation in case of closes below $63. In this scenario, a downward movement could start targeting the $50 support, which is 22% below.
Of course, the ability of the BTC price to hold or break the $26,950 support is also important.