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As mentioned in a previous article, Litecoin’s price is followed by a bullish breakout. This changed the previously ambiguous situation to a bullish one. A deeper look at Litecoin’s price movement and indicators will reveal what the bulls / bears have in store for LTC.
Litecoin 1-day chart
Source: LTCUSD on TradingView
The one-day chart for Litecoin showed the cryptocurrency coming out of the triangle. However, it appeared to be facing rejection at the $ 50.80 resistance level. If the LTC bulls fail to reach this level, it’s back to the pavilion.
The RSI indicator presented a potential reversal before the overbought zone, so if needed, the bulls have room to push the coin above that resistance. The Stochastic RSI represented a bearish crossover, a sign of bearish pressure. However, this can be ignored if the bulls push out.
Levels to watch remain the same as in the last article – The immediate resistance of $ 63.94 is a good resting place in case the price rises and regains the $ 50.80 mark.
However, a bullish scenario is hard to come by, especially considering the bearish divergence over a daily time frame. This could push the price lower at the top of the consolidation triangle, a level where the price will find more support.
Since this divergence is at a higher level, it could occur over a couple of days. Hence, entering shorter time frames would give more insight into where the price might be heading in the short term.
Litecoin 1 hour chart
Source: LTCUSD on TradingView
The one-hour chart goes against the bearish indication above, but it should be noted that these are two different time frames. In a much shorter period of time, we can expect Litecoin to head upwards as a descending wedge was forming.
Although the price still has some rebounds before the breakout, we can expect the price to be able to test the $ 50.80 level before declining. There is a high probability that this could just be a wick.
Conclusion
In any case, in the long run [1-day] it looked bearish in light of the rejection at $ 50.80 and a bearish divergence. However, the short term [1-hour] the scenario looked bullish due to the formation of a descending wedge.
It is best to hold this trade on both timelines as the tides could change either way, especially considering Bitcoin’s uncertain price.
