Litecoin Price Analysis: Where Is Price Heading After The Double Top?

The price of Litecoin reached a high of $52, before making a double top pattern combined with a bearish divergence in both the RSI and the MACD. However, the price has still not broken below the ascending support line that has been in place for 78 days. In the short-term, the price made a temporary bottom at $44 and has retraced all the way to the 0.618 fib line at $50. Price is also following a short-term ascending support line.

Important Notes:

  • The closest support area is at $40
  • There is also a minor support area at $30
  • Price faces resistance in the $50-55 area
  • Price is developing short-term bearish divergence in the RSI

LTC Price Analysis – LTC/USD – 12-Hours Chart

Litecoin Price Analysis
chart Source: Tradingview, bitfinex

A look at the 12-hours chart shows that price made a double top (bearish reversal pattern) slightly above the main resistance area at $50 before a bearish engulfing candle pushed it back sharply. The drop was done on significant but not extreme volume. Furthermore, the double top was combined with a bearish divergence in both the RSI and the MACD, the latter of which has made a bearish cross. We can also see that price has been following an ascending support line for the past 78 days, since the bottom at $24. The support line is currently at $36. Two support areas have been highlighted, one near $40, corresponding with the support line and the other at $30, formed by previous lows.

As for the indicators, the RSI is at 56, indicating neither oversold nor overbought conditions. After dropping for a while, the MACD is close to making a bullish cross. Price is trading above the 50-period moving average but below the 21-period MA, which is giving very close resistance to the price. The 50-period MA is losing strength and can possibly make a bearish cross.

LTC Price Analysis – LTC/USD – 15-MInutes Chart

Litecoin price Analysis
Chart Source: TradingView, bitfinex

A look at the 15-minutes chart shows that after the drop from $52, price bottomed at $44, and has retraced all the way to the 0.618 fib line at $50. This movement has been going on for 5 days and two hours. After making a double bottom on February 28 , price has been following an ascending support line. In more recent movements, price made a relative high at $50, however has started to create bearish divergence in the RSI, which has been in overbought territory for a period and is back trading at 60. If the support line fails to hold price, the next support area will be found near $44, creating a triple bottom pattern.

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