Technical Analysis: Litecoin (LTC) in Deepwater!

Litecoin, also known as Bitcoin’s small brother inside Crypto Community, is in deep waters lately together with all other major caps and can be seen dancing in tune with its counterpart.

Litecoin Price Prediction

A quick glance through the weekly chart of LTC to USD; the price has broken down the 78.6% Fib level, which is $48.65, and this level also coincides with the weekly key support. LTC prices are under 9 days SMA (Simple Moving Average: solid blue line) thus, clearly shows that the bears are in charge. Weekly RSI is at 37.05 which indicates that the price is approaching the oversold region. LTC price can go down further, 78.6% Fib level will act as resistance here, and it can go down all the way to $22.25.

1 Day LTC/USD Chart with Simple Moving Averages and Support/Resistance lines shows us further that the prices are completely under the grip of Bears.

• Prices have broken the support denoted by Red dotted straight line at $48.56, which corresponds to the 78.6% Fib level on a weekly chart.
• RSI and Stoch RSI both indicating a trend reversal as both indicate that the prices are at the oversold region.
• If Bulls favors the Litecoin and it manages to break the resistance of $48.56, then $56.31 will be the next resistance as it previously acted as a support and it also coincides with the trend line denoted by solid pink line, 21 days SMA (solid white line) and 49 days SMA (green solid line).

4 Hour LTC/USD Chart brings some opportunity for the short-term traders as prices are supported by 9 days SMA and 21 days SMA, and meanwhile, 9 days SMA seems to make a Golden Cross with 21 days SMA. The coin might see a push or even a small wick towards 49 days SMA (solid green line) at $49.84.

A final word of caution here as Litecoin’s current price movements are highly correlated to the Bitcoin prices.

Blue line = LTC/USD price

White line= BTC/USD price

As per the LTC predictions and the current price trend, we can clearly see that the LTC is closely following the BTC’s price movement, any sharp and violent price movement in Bitcoin either up or down can bring the price of Litecoin towards the critical support of $22.55.