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Litecoin short-term Price Analysis: 15 October

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Source: Pixabay

As mentioned in a previous article, Litecoin‘s price has followed through with a bullish breakout. This changed the previously ambiguous situation into a bullish one. A deeper look into Litecoin’s price movement and indicators will reveal what the bulls/bears have in store for LTC.

Litecoin 1-day chart

Source: LTCUSD on TradingView

The one-day chart for Litecoin showed the cryptocurrency breaking out of the triangle. However, it seemed to be facing rejection at the resistance level of $50.80. Should the LTC bulls fail to conquer this level, it’s back to the pavilion.

The RSI indicator presented a potential reversal before the overbought zone, hence, if need be, bulls have the space to push the coin above the said resistance. The Stochastic RSI pictured a bearish crossover, a sign of bearish pressure. However, this can be disregarded if the bulls push through.

Levels to keep an eye out for remain the same from the last article – The immediate resistance of $63.94 is a good resting place in case the price surges and reconquers the $50.80-mark.

However, a bullish scenario is hard to come by, especially considering the bearish divergence on a daily time frame. This might push the price down to the top of the consolidation triangle, a level where the price will find more support.

Since this divergence is on a higher level, this might take place over a couple of days. Hence, going into shorter time frames would give more insight as to where the price might head in the short-term.

Litecoin 1-hour chart

Source: LTCUSD on TradingView

The one-hour chart does go against the above bearish indication, but it should be noted that they are two different time frames. On a much shorter timeframe, we can expect Litecoin to head higher since a falling wedge was being formed.

While the price still has a few bounces left before the breakout, we can expect the price to retest the $50.80-level before heading lower. There is a high chance that this might just be a wick.

Conclusion

Either way, the long-term [1-day] looked bearish, in light of the rejection at $50.80 and a bearish divergence. However, the short-term [1-hour] scenario seemed bullish due to the formation of a falling wedge.

It is better to sit this trade out on both timeframes as the tides could turn either way, especially considering Bitcoin’s uncertain price.

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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.

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