Long-Term Outlook

Litecoin [LTC] Weekly Chart
A look at the Weekly chart for Litecoin shows that price is currently forming a bullish engulfing weekly candle.

Price is currently trading at $44 after briefly touching the resistance near $50 and retracing.

The price is facing resistance from the moving averages, most notably the 200-period MA (white) and trading below all the other MAs.

After a long period of bullish divergence, the MACD is moving upward with strength, possibly wanting to turn positive for the first time in more than a year.

The RSI is at 47 and moving upward with strength.

It is worth keeping an eye on if the weekly candle closes above or below the 200-period MA.

Medium-Term Outlook

Litecoin [LTC] 3-Day Chart
A look at the 3-day chart shows us that price is also facing resistance from the edge of the Ichimoku cloud, which coincides with the $50 area of resistance.

Price is trading below the 50 and 200-period MAs.

However, the MACD is moving upward with strength and is almost positive.

Litecoin [LTC] Daily Chart
A look at the Daily chart shows that price has reversed after touching the 200-period MA, forming a long wick in the process, indicating that there is still a lot of selling power.

However, the Ichimoku cloud is positive for the first time in more than six months, and the price is trading above the 7, 21 and 50-period MAs.

The closest support area is formed by the previous resistance near $40.

Short-Term Outlook and Price Prediction

Litecoin [LTC] 2-Hour Chart
A look at the 2-hour chart shows signs of short-term weakness.

After a bullish candlestick with a long upper wick, the price has developed very significant bearish divergence in the RSI, and the MACD is close to making a bearish cross.

Price Prediction:

Even though I am bullish on Litecoin in the long-term, I believe that the upward move has lost most of its power, and during the next week, the price will retrace to the area of support near $41.

Conclusions:

  • The weekly candle is a bullish engulfing candle.
  • Price faces significant resistance from long-term moving averages.
  • There is short-term bearish divergence.

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