Key Takeaways
Litecoin broke down from a long-term ascending support trend line in July. While it has increased since then, the two attempts at reclaiming the trend line were unsuccessful.
Let’s analyze the Litecoin price action and see if LTC can muster enough strength and reclaim the trend line or if a downward trend has begun to take it to new lows.
The weekly time frame Litecoin chart shows that the price has increased alongside an ascending support trend line since June 2022. The trend line caused numerous bounces until July 2024; then, the price finally broke down.
Since then, Litecoin has unsuccessfully attempted to reclaim the ascending support trend line (black icons).
The most recent rejection happened last week, validating the $78 horizontal area as support. The trend cannot be considered bullish until LTC reclaims the trend line.
While there is no significant Litecoin news, founder Charlie Lee commented that he is excited about the Canary Capital Litecoin ETF filing on Oct. 15 and considers it a validation of institutional interest in LTC.
The Relative Strength Index (RSI) was rejected by 50, while the trend line rejected the Litecoin price.
While the Moving Average Convergence/Divergence (MACD) made a bullish cross (white icon), it has not crossed above 0 yet, and the positive reading is not enough to offset the rest of the bearish signs.
So, the weekly Litecoin chart leans bearish. If the downward movement continues, the closest horizontal support will be at $50.
Aligning with the weekly time frame, the daily one also predicts a bearish Litecoin price. The price has been trading inside an ascending parallel channel since the Aug. 5 bounce.
This means that the bounce is corrective and will eventually be retraced.
The Litecoin price has created several successive bearish candlesticks since the rejection on Oct. 19 and fell below the channel’s midline today, on Oct. 19.
Once LTC breaks down from the channel, it can gradually decline to long-term support at $50.
Conversely, closing above the minor resistance at $76 and the long-term at $78 will invalidate this bearish hypothesis. Currently, this seems unlikely.
The Litecoin price failed to reclaim a long-term ascending support trend line from which it previously broke down.
Moreover, the price trades in a bearish short-term pattern. A breakdown from the short-term one can trigger a downward movement toward the range low at $50.