Litecoin Technical Analysis – December-9-2023
FxNews – In our recent Litecoin technical analysis, we predicted a surge in Litecoin price toward the $80 resistance area, a forecast that has proven accurate. The LTCUSD pair reached this high, aligning with the upper band of the trading channel. Currently, the pair is retracing from this upper band within the bullish flag pattern, and we anticipate a test of the R2 support at the $75.9 level.
The Relative Strength Index (RSI) is moving below the overbought area, heading toward the middle line, which supports the current bearish momentum. The R2 level, coinciding with the median line of the bullish flag, appears to be the next significant target.
Should the price maintain stability above the R2 level, we expect a revisit to the recent high. However, a break below R2 could lead to an extended decline to the lower band of the bullish flag, around the $74 mark. This level would represent a critical juncture for Litecoin, as a breach could signal a further downside.
Investors and traders should closely monitor these support and resistance levels, as they offer insights into possible price actions in the short term.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.