The Litecoin (LTC) price has been trending downward since reaching a high of $80 on December 9.
While the Litecoin price has also increased since August 17, it is trading inside a corrective pattern.
Litecoin Creates Bearish Candlestick
The weekly time frame technical analysis shows that the LTC price has fallen under a descending resistance trend line since April 2021.
LTC initially moved above this trend line in June 2023 but failed to sustain the upward movement, creating a deviation (red circle) and subsequent decrease.
After the decrease, the LTC price broke out from the trend line again in October (green icon) but failed to sustain the upward movement. Litecoin created a bearish engulfing candlestick last week.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The current RSI reading of 50 is a sign of an undetermined trend.
Read more: 7 Best Litecoin (LTC) Wallets for 2023
What Are Analysts Saying?
Cryptocurrency traders and analysts on X are bullish for the future LTC price trend.
World Of Charts believes the price will increase to $300 after breaking out of its long-term pattern.
Joao Devesa has a similarly bullish outlook, though he believes the LTC price will outperform BTC. He tweeted:
My predictions for the #Litecoin price in the coming months . conservative target 0.0125 and 100k Bitcoin: $LTC = $1250 . aggressive target 0.025 and 250k Bitcoin: #LTC = $6250 This is where Litecoin price should land in the next bull run
Read more: How To Buy Litecoin (LTC) in 4 Easy Steps
LTC Price Prediction: Correction Incoming?
The daily timeframe gives a bearish LTC reading. While the price has increased since August 17, the price action has been contained inside an ascending parallel channel.
Such channels often contain corrective movements, meaning an eventual breakdown is likely. The fact that the LTC price was rejected by the 0.382 Fib retracement resistance (red icon) on December 9 and trades below the channel’s midline supports this possibility.
Additionally, the daily RSI gives a bearish reading. The indicator broke down from its ascending support trend line (green) and is now above 50. Both are considered signs of a bearish trend.
If the LTC price breaks down from the channel, it can decrease by 20% to the closest support at $58.
Despite this bearish LTC price prediction, a breakout from the channel can trigger a 30% increase to the 0.618 Fib retracement resistance level at $92.
Read More: Top 9 Telegram Channels for Crypto Signals in 2023
For BeInCrypto’s latest crypto market analysis, click here.