While the rise in the cryptocurrency market pleases investors, a segment of crypto assets continues to stagnate. Litecoin (LTC) price is above the long-term support level but continues to trade within a short-term bearish formation. LTC price has been trading without significant volatility for about a year. So, how much longer will this trend continue?
Litecoin Weekly Chart Analysis
The weekly time frame technical analysis shows that LTC has been increasing along a rising support trend line since June 2022. Since August 2023, the trend line has been confirmed six times (green symbols) but has failed to initiate significant bullish movements. The trend line has been in existence for over 620 days. Additionally, the LTC price is trading above a long-term horizontal support area.
Similarly, the weekly Relative Strength Index (RSI) continues to show uncertainty. Market investors prefer to use the RSI level as a momentum indicator to determine overbought or oversold conditions and decide whether to accumulate or sell an asset.
Litecoin Daily Chart Analysis
While the weekly time frame provides an ambiguous reading, the daily chart continues to show a downtrend due to LTC price movements. Since September 2023, the movement has been within an ascending parallel channel, indicating that the rise is corrective.
Significant overlaps within this formation also suggest a corrective increase. Currently, the LTC price is trading at the lower end of the channel, and the RSI has dropped below 50. If LTC breaks out of the channel, it could fall to the next nearest support at $58, a 15% decrease. However, a rise above the channel’s mid-line could trigger a 16% increase towards the $80 resistance trend line.
On the social media platform X, many cryptocurrency investors and analysts are optimistic about the future trend of LTC. CryptoSurf, shared a long-term fractal with followers, indicating that LTC price has just started a long-term bullish cycle.
NebraskanGooner, suggests that LTC price could gain value if it rises above $72. CryptoMoneyKing expresses a similar view.
