While there has been a decrease in the price of the token, the price still sits above strong support, and a bounce from there is possible.
Litecoin Hits a Fresh ATH
Litecoin has been on a bullish run since the beginning of the year. And it hit a new ATH of $417 on the 10th of May.
Somehow, the new ATH could not be sustained for long, and the price since suffered rejection which led to the downward trend it has been. Currently, as at the time of compiling this article, LTC is trading slightly over $197 with a strong negative change rate of -35% in the last 24 hours. This area could likely be supported as it has previously acted as resistance twice recently, around April 12.
Irrespective of the drop, the indication from the technical indicators still shows a bullish move. Both the Stochastic Oscillator and MACD support this fact. Additionally, the Relative Strength Index (RSI) has shown a very strong divergence and a strong continuation of the trend.
If there is a bounce in the price, the next resistance in the chart will be around $383, which is close to the current market ATH. It has, however, been predicted that the next resistance breakout could lead the price to $603.
On the daily market chart, the price still looks more bearish. All through the entire drop, the price fell beyond the $330 area that was supposed to act as price support. Contrarily, it has been marked out and validated as a price resistance.
Also, the market has failed to bounce at the 61.8% Fibonacci retracement level, which coincides with $282. The primary support area on the chart is located at the $246 price level. The price level is both a 78.6% Fib retracement level and a horizontal support area of the more recent bullish movement.
On a final note, looking at the shorter timeframe like the 2-hour chart, the market is bullish.
First, the appearance of a falling wedge is termed as a trend [bullish] reversal pattern. Second, to the first is the MACD and RSI showing a substantial bullish divergence.
In conclusion, while the consolidation in the falling wedge continues, which might eventually bring the price to the $246 support area, there is an expectation of an ultimate breakout.
LTC against BTC
Against the USD pair, which has some shadow of doubt to its bullish move, the LTC/BTC pair is firmly bullish. The noted points are the recent breakout from the falling trend line acting as a resistance and the confluence of other technical indicators.
In conclusion, the short-term trend of LTC is bullish, but the long-term position is unclear.