Is the Litecoin Price About to Crash? | Credit: Hameem Sarwar
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Key Takeaways
Litecoin’s (LTC) price deviated above several important resistance levels.
Litecoin trades inside a long-term corrective parallel channel.
Will Litecoin eventually break down from the channel, or can it recover?
Litecoin’s (LTC) recent price movement has been marked by persistent rejection at key resistance levels, signaling weakness in its long-term structure.
Despite positive news about an Exchange-Traded Fund (ETF), the Litecoin price failed to initiate a sustained upward movement.
The technical outlook suggests that bearish pressure remains dominant, as momentum indicators confirm a fading of strength.
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LTC did not hold its lows for long, bouncing and creating a massive long lower wick (green icon).
However, the price also fell below the $110 horizontal area, validating it as resistance and confirming that the movements above it were just deviations.
The area will provide resistance in the future, strengthened by the still-standing diagonal trend line.
Momentum indicators are also bearish. The weekly Relative Strength Index (RSI) is below 50, and the Moving Average Convergence/Divergence (MACD) made a bearish cross (black circle).
Therefore, Litecoin’s bearish prediction suggests that the price will likely continue to decline until it reaches its long-term support level at $70.
Litecoin’s Technical Analysis
A closer look at the upward movement since June 2022 reveals that the price of Litecoin has been trading within an ascending parallel channel throughout this period.
These channels typically exhibit corrective movements, so their eventual breakdown is the most likely future outcome.
The fact that Litecoin trades in the lower portion of the channel makes this breakdown even more likely.
Furthermore, LTC has completed an A-B-C structure (black), where waves A and C have the same length, reinforcing that the upward movement has been corrective.
The short-term six-hour chart confirms that the Litecoin price will likely continue to decline.
The technical analysis shows that the price of Litecoin deviated above the $100 horizontal resistance area (black circle) before falling back inside the confines of an ascending parallel channel.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
