Litecoin Price Prediction: LTC Is Creating a Head and Shoulders Pattern, Will the Neckline Provide Support?
A look at the Weekly chart for LTC/USD shows that price made a temporary bottom at $28, inside the support area formed by the highs of 2014.
It is currently trading at $48, slightly above the 21-period moving average but below the 50-period MA and the Ichimoku cloud.
There is also a minor resistance area near $50.
The RSI is at 48, indicating neither oversold nor overbought conditions.
On a more positive note, there has been a significant bullish divergence in the MACD, which is moving upward with strength but has not turned positive yet.
Given this information, I am bullish on the long-term.
A look at the 3-day chart for LTC/USD shows that price is trading inside the negative Ichimoku cloud.
Also, we can see that price is following an ascending support line and has been doing so for the past 80 days.
Furthermore, we can see that the 21 and 50-period MAs are very close to making a bullish cross and are offering support to price.
While the MACD is positive, it has started to lose strength.
A look at the Daily chart shows that price is possibly making a head and shoulders pattern (bearish reversal).
Furthermore, the price is following a medium-term support line (neckline of H&S) and has been doing so for 24 days.
Price has also found support above the 21-period moving average.
The head and shoulders pattern has been combined with a bearish divergence in the RSI, which is currently at 54.
Short-Term Outlook and Price Prediction
A look at the 6-hour chart shows that besides the support line, the price is possibly following a descending resistance line that has only been validated twice.
Both lines combine to create a symmetrical triangle, which is projected to end on March 8th.
If the support line fails to hold the price, the next support area will be found near $42.
Furthermore, we can see that the 21 and 50-period MAs have made a bearish cross and are offering resistance to price.
I believe that during this week the price will break down from the support line and fall to the support area near $42.
- Price is trading inside a long-term head and shoulders pattern.
- There is a medium-term bullish divergence.
- Price is trading inside a short-term symmetrical triangle.
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