A look at the Weekly chart for Litecoin in logarithmic form shows that after falling to the major support area at $23-$26, the price promptly reversed with an upward move towards the 200-period Moving Average.
Price is currently trading at $33.Price is facing resistance from all the moving averages and the Ichimoku Cloud.
Multiple bearish crosses have occurred (yellow arrows), and the 7-period MA is very close to making another bearish cross with the 200-period MA.
The RSI is at 40, indicating neither overbought nor oversold conditions.
However, the MACD is moving upward, and there is bullish divergence developing.
If the support area fails, the next one will be found at $4.5-$6.
A look at the 3-day chat shows that price is trying to move above the 7-period MA.
There is a significant amount of bullish divergence developing between price and the MACD, but it has not crossed into positive territory yet.
However, the price is still trading below the 21,50 and 200-period MAs and the Ichimoku Cloud.
A look at the Daily chart for Litecoin shows that price is currently trying to break resistance from the Ichimoku Cloud after an unsuccessful attempt in early January.
The projected cloud from February onwards is positive.
Furthermore, the MACD is close to making a bullish cross and becoming positive.
Short-Term Outlook and Price Prediction
A look at the 2-hour chart gives more information about where price might be headed.
Price is trying to break the $34 area of resistance, which also coincides with the 0.382 fib level of retracement.
Furthermore, there is a significant amount of bullish divergence developing in the RSI.
Price Prediction: Given this information, I believe that price will break the $34 resistance in the short-term and head for the $42 resistance from the previous high, with smaller resistance areas found at the 0.5, 0.618 and 0.782 fib levels at $35, $37 and $39 respectively.
- Price is facing resistance from the 200-week moving average.
- Price almost broke the daily Ichimoku Cloud.
- There is a bullish divergence in short-term timeframes.