The Litecoin (LTC) price has decreased since its yearly high in July, falling by 50% in the process.
The decrease caused a breakdown from a long-term ascending support trendline, taking the price to the $64 long-term support.
Litecoin Returns to Long-Term Horizontal Support
The weekly timeframe technical analysis for Litecoin shows that the price has fallen since its yearly high of $115 in July. The decrease culminated with a low of $56 in August. This was a decrease of 50% in 42 days.
During the descent, the cryptocurrency also broke down from an ascending support trendline, which had been in place since June 2022.
Breakdowns from such long-term structures indicate that the preceding move is complete and a new one has begun in the other direction.
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Since its August low, the LTC price has traded inside the $63 horizontal support area. Previously, the area had acted as resistance in the latter part of 2022. Due to the ongoing bounce, it has likely turned to support (green icon).
LTC/USDT Weekly Chart. Source: TradingView
The weekly RSI provides a bearish outlook. With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true. The indicator is below 50 (red line) and falling, both signs of a bearish trend.
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LTC Price Prediction: Will Double Bottom Catalyze Increase
While the weekly timeframe is bearish, the daily chart provides a more bullish outlook. There are several reasons for this.
Firstly, the price has created a double bottom pattern. The double bottom is considered a bullish pattern, meaning it usually leads to breakouts.
Secondly, the double bottom was combined with bullish divergence (green line) in the RSI. This occurs when a price decrease is combined with a momentum increase. It often leads to significant bullish trend reversals, as has been the case for Litecoin so far.
If the upward movement continues, the previous ascending support line will be at $80, 22% above the current price.
LTC/USDT Daily Chart. Source: TradingView
Despite this bullish Litecoin price prediction, a close below the $63 horizontal support area will invalidate the bullish double-bottom pattern.
In that case, a 22% drop to the $50 support area will be likely.
