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Is this a correction or the start of a new rally?

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Litecoin weekly logarithmic chart – Source: Tradingview.com

A look at the Litecoin weekly chart in logarithmic form shows that the price fell in the $ 20-25 support area formed by the 2014 high.

Subsequently, the price started a rally and is now trading at $ 30.

Is it a correction or the start of a new event?

Let's take a closer look and find out.

Long-term Outlook

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Litecoin weekly chart – Source: Tradingview.com

A look at the indicators on the weekly chart gives us more information.

The price is facing the resistance of the 200-period moving average, and the 7 and the 200 MA period are close to making a bearish cross.

In addition, the MACD has done a bullish cross and is now moving upward.

Finally, the RSI fell below 30 for the first time since 2014, but there is still no divergence.

Medium-term Outlook

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Graph 3 days of Litecoin – Source: Tradingview.com

A look at the 3-day chart shows that the resistance to the price shot provided by the 7-period moving average is retraced.

There is a small amount of divergence in the RSI, and the MACD has made a bullish cross.

Finally, Chaikin Oscillator is almost positive for the first time since April.

Short-term Outlook

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Graph of 1 day of Litecoin – Source: Tradingview.com

A look at the daily chart shows that the price started the rally after a long period of bullish divergence in the RSI.

In addition, the MACD is almost positive for the first time since April, but seems to have stagnated before crossing 0.

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6-hour graph of Litecoin – Source: Tradingview.com

A closer look at the 6-hour chart shows that the price ended the rally right in the previous resistance area.

Furthermore, there is a bearish divergence in all three RSI, MACD and Chaikin Oscillator. The price is currently tracked on the 0.5 fib line.

conclusions

  • The price fell in the major support area at $ 20-25 and a small recovery followed.
  • The price has been traced after the bearish divergence and is now on the 0.5 fib line.
  • Long-term indicators tend to become bullish.
NOTE: Investing or negotiating digital assets, such as those present here, is extremely speculative and involves considerable risks. This analysis should not be considered an investment advice, use it for information purposes only. The historical performance of the assets discussed is not indicative of future results. Statements, analyzes and information on blokt and associated or associated sites do not necessarily correspond to the opinion of blokt. This analysis should not be interpreted as advice for purchase, sale or storage and should not be taken as approval or recommendation of a particular asset.

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