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Analysis

Litecoin long-term Price Analysis: 18 October

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Source: Unsplash

Litecoin, like many altcoins in the market, has seen its price drop on the charts. At press time, a consolidation after the aforementioned drop seemed to be ongoing, following which, LTC may be due for a small pump. Overall, Litecoin’s price was observed to be up for a small pump, one that could turn bullish if it breaks the larger consolidation pattern.

Litecoin 1-day chart

Source: LTCUSD on TradingView

Litecoin’s one-day chart noted a consolidation pattern in the form of a symmetrical triangle. A pump that began on 21 September had pushed LTC’s value by 24% from $41.57 to $51.55. However, following the same, a bearish divergence contributed to the price dropping by 7.55% to where it stood at the time of writing.

The immediate levels of support for LTC included $45.23 and $39.80, while the immediate resistance levels included $50.80 and $63.94. However, there could be an intermediate resistance between the aforementioned resistance levels and LTC can test each of them, before continuing higher.

As of now, the LTC set-up looks bullish in the short term, however, if the price does manage to successfully break above the consolidation pattern, it could be bullish in the long-term.

The RSI pointed to a short-term rebound close to the 50-level [aka neutral zone], one that could be related to the short-term bounce mentioned above.

The Stochastic RSI indicator showed a sharp decline from the overbought zone and towards the oversold zone. A bullish crossover is still a long way from happening, however, it could be a possible sight a few days down the line.

The OBV indicator seemed to hold consistently at $16.5 million or higher, a figure that indicated that no new volume had come into trading. This might imply a false appreciation in price.

What to expect?

A surge of 7% or higher can be seen in the coming week, however, any surge above the consolidation of $50.77 would be bullish. A bounce lower than this level would be bearish for the coin.

Since the RSI and the Stochastic RSI were bullish and the volume indicator noted uniform volume, a surge can be expected up to $50.77. Any surge above this level would be a fake surge.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.