The Litecoin (LTC) price is currently showing bullish signals against Bitcoin, sparking speculation about a potential significant upward move for LTC.
However, despite these promising indicators, the initial trends observed this month were bearish. As such, while the possibility of a sharp rise in the LTC price looms should strengthen the bullish signals, the current market conditions suggest a cautious approach.
Litecoin’s Rough Month: Down 37.3% Amid Market Turmoil
The Litecoin price has experienced a notable decline of over 37.3% this month, after a local high of around $113. LTC is hovering around the golden ratio support level at around $80, providing a potential opportunity for a bullish pullback.
In addition, the moving average convergence divergence (MACD) lines formed a bullish crossover on the monthly chart. However, the MACD histogram is starting to trend bearishly lower, while the relative strength index (RSI) is located in neutral territory.
Read more: How to buy Litecoin (LTC) and everything you need to know
Weekly chart analysis: the golden ratio as a strong support level
Last week, the LTC price initially fell below the Golden Ratio support level of around $80. However, the price returned exactly to this critical support level by the week’s close.
This indicates a potential for an upward move in the current week. Nevertheless, the MACD histogram on the weekly chart indicates bearish signals since the previous week.
This implies a possible bearish crossover of the MACD lines in the near future. Additionally, the exponential moving averages (EMAs) are displaying a death cross pattern on the weekly chart, indicating a bearish trend in the medium term.
Meanwhile, the RSI remains in neutral territory, offering no clear indications of bullish or bearish momentum.
Litecoin’s Positive Signal: Golden Crossover Remains in the Daily Chart
In Litecoin’s daily chart, a golden cross remains, indicating a sustained bullish trend in the short to medium term. However, there was a recent bearish crossover of the MACD lines.
At the same time, the MACD histogram is showing bullish momentum today, while the RSI remains neutral. Two key hurdles lie ahead for LTC’s trajectory.
The first resistance is around $89.4, which coincides with the 50-day EMA. Additionally, significant Fibonacci resistance looms around $97.
A breach beyond the golden ratio at $97 would signal the completion of the corrective phase, possibly paving the way for LTC to target the 0.382 Fib resistance at around $140.
Conversely, should LTC experience downward pressure, significant support is expected between $63 and $67.5.
Bearish Signal: Litecoin’s 4H Chart Shows Death Cross Formation
An upward trajectory to the Golden Ratio level at around $97 indicates a potential upside of around 18%. In particular, the MACD lines in the 4H chart recently crossed bullish, accompanied by a bullish uptick in the MACD histogram.
Meanwhile, the RSI remains in neutral territory. Short-term outlook favors a bullish trend.
However, it is essential to recognize that the trend has already been confirmed as bearish by the EMAs death cross, highlighting the ongoing corrective phase.
Read more: Litecoin (LTC) Price Prediction 2024/2025/2030
Litecoin vs. Bitcoin: Emerging Silver Lining in Price Dynamics
Despite the significant downtrend in LTC price versus Bitcoin, there are indications of a potential reversal. In particular, the MACD lines are showing a bullish crossover on the weekly chart, while the RSI is indicating a bullish divergence.
If Litecoin begins an upward trajectory, it will encounter significant resistance levels between around 0.001716 BTC and 0.00215 BTC. Additionally, the 50-week EMA presents a formidable barrier around 0.00204 BTC.
Disclaimer
In accordance with the Trust Project Guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimers have been updated.
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