Litecoin struggles to reclaim support
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Litecoin experienced a significant breakdown from a long-term ascending support trend line in July, and despite some recovery efforts, two attempts to reclaim that trend line have failed.
Given these indicators, the weekly chart leans bearish, with the nearest horizontal support sitting around $50 if the downtrend persists. In the daily time frame, Litecoin's price action mirrors the bearish sentiment from the weekly chart. Since bouncing on August 5, LTC has been trading inside an ascending parallel channel, a pattern typically viewed as corrective and prone to eventual breakdowns. Since the rejection on October 19, the price has formed multiple bearish candlesticks and slipped below the midline of the channel. If LTC breaks below this channel, it could continue declining toward the long-term support level of $50.
However, should Litecoin manage to close above the minor resistance level at $76 and regain the critical long-term support at $78, it could invalidate the bearish outlook. As of now, this scenario appears unlikely based on current price action.
Litecoin’s inability to reclaim its long-term ascending support trend line, coupled with a bearish short-term pattern, suggests further downside potential. A break below the current channel could send the price toward the $50 support level, while only a strong push above $78 would challenge this bearish narrative.
Litecoin struggles to reclaim support
Analyzing the price action, Litecoin had been increasing along an ascending support trend line since June 2022. This trend line provided multiple bounces, sustaining the price until July 2024, when LTC finally broke below it. Since the breakdown, attempts to recover and regain support have proven unsuccessful, as indicated by repeated rejections at the trend line. The latest rejection, which occurred last week, confirmed the $78 horizontal area as a critical resistance zone. Until Litecoin can reclaim the trend line, the outlook remains bearish. While no major news events have driven recent price action, Litecoin founder Charlie Lee expressed enthusiasm over the filing of the Canary Capital Litecoin ETF on October 15, which he views as a sign of growing institutional interest in the cryptocurrency.Litecoin's Bearish Signals
Technical indicators suggest continued weakness for Litecoin. The Relative Strength Index (RSI) was rejected at the 50 level, while the price failed to break above the trend line. Although the Moving Average Convergence/Divergence (MACD) made a bullish cross, it remains below the zero line, signaling that this positive momentum is not yet strong enough to offset other bearish factors.Given these indicators, the weekly chart leans bearish, with the nearest horizontal support sitting around $50 if the downtrend persists. In the daily time frame, Litecoin's price action mirrors the bearish sentiment from the weekly chart. Since bouncing on August 5, LTC has been trading inside an ascending parallel channel, a pattern typically viewed as corrective and prone to eventual breakdowns. Since the rejection on October 19, the price has formed multiple bearish candlesticks and slipped below the midline of the channel. If LTC breaks below this channel, it could continue declining toward the long-term support level of $50.
However, should Litecoin manage to close above the minor resistance level at $76 and regain the critical long-term support at $78, it could invalidate the bearish outlook. As of now, this scenario appears unlikely based on current price action.
Litecoin’s inability to reclaim its long-term ascending support trend line, coupled with a bearish short-term pattern, suggests further downside potential. A break below the current channel could send the price toward the $50 support level, while only a strong push above $78 would challenge this bearish narrative.