Here’s a comprehensive and updated overview of the technical analysis for Litecoin (LTC) and trading recommendations for this week:
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Current technical condition
1. Technical indicators and patterns:
• A 'Falling Wedge' pattern is noted on the LTC/BTC pair, with a bullish divergence on the RSI indicator over the two-week period, indicating a decrease in selling pressure and a potential bullish reversal. A resistance level is targeted around 0.00143 BTC, which is also the EMA rate for two periods (20–2W).
• The price has rebounded from the trend support line for the fifth time, reinforcing the strength of this level, and giving a projection of a potential rise towards $150.
• Nevertheless, there has been a 4.5% drop recently to around $116.65 after a previous upward wave driven by ETF expectations, with mixed technical indicators and RSI in neutral territory (~50).
2. Price forecasts:
• Some analyses suggest a potential for the price to reach $150–180 within two weeks, despite conditional signals regarding the continuation of upward momentum.
• Another analysis hinted that breaking the resistance level at $129.16 might open the way towards $137.04, while breaking the support at $103.16 could lead to a deeper decline.
• Analysis from The Currency Analytics indicated a potential for an additional upward movement of around 14% if the resistance at $117 is broken, considering $100 as a major support level for a rebound if the price drops.
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Trading recommendations for this week
Scenario Recommendation
Resistance around $117–129. Closing above: Opportunity to enter towards $137–150, with a flexible stop loss below the first support.
Drop to $103–110. Potential rebound: Possible entry at attractive buying levels, stronger bottom near $100.
Strong bullish breakout. Potential extension towards $150–180 if momentum continues and ETF expectations remain supportive.
Weak momentum or bearish rebound. It's preferable to monitor support at $103–110 and follow loss management strategies meticulously.
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Additional influencing factors
• Delays in ETF decisions from the U.S. Securities and Exchange Commission until October may create short-term uncertainty in momentum.
• Retail trader activity in the market shows support for the upward trend, especially with the decline in activity from large investors (Whales).
• The launch of investment funds for LTC like 'Unilabs' with returns of around 12% may increase demand and enhance long-term value.
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Quick summary:
• Overall technical analysis is positive to neutral, with promising bullish signals like the price bouncing from strong support and the Falling Wedge pattern.
• Opportunities are clear if resistance at $117–129 is exceeded, where levels of $137–150 can be targeted with a smooth stop loss below $117.
• Portfolio alternative: entering at price rebound towards $103–110, with clear stop loss strategies in place.
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