Litecoin traded slightly above yesterday’s close at about $79 in today’s trading session, indicating a slight increase in value compared to last day’s close. The LTCUSD daily chart shows that the pair formed a longwick bullish candlestick pattern, which can be interpreted as the bulls being determined to make a comeback.
This has been seen today, with Litecoin trading slightly above yesterday’s close.
Technical Indicators Favor Litecoin’s Rise
To better understand Litecoin’s market movement, we zoom into the 4-hour chart. The technical indicators provide a bullish signal, which aligns with the Longwick candlestick pattern in the daily chart above. The awesome oscillator bars are green and nearing the signal line from below, and the RSI indicator is also rising and approaching the median line.
The Bearish Scenario
From a technical perspective, the primary trend is bearish because the price hovers below EMA 50. The descending trendline is shown in the 4-hour chart, depicted in red. Regardless of the bullish signals we receive from the daily and 4-hour charts, the trend remains bearish as long as the LTCUSD trades below the trendline.
In this situation, the decline should continue, and the next bearish target could be April’s low, the $70 resistance.
Litecoin Potential Reversal Points
Conversely, the bearish technical analysis should be invalidated if the LTCUSD price crosses and stabilizes above the descending trendline or the $81 mark. If this scenario comes into play, the surge that began yesterday from $74 will likely extend to the $88 barrier, which acts as strong resistance.
