Litecoin (LTC) price bounced into a long-term horizontal and diagonal support area last week.
The price has not yet started a significant increase, although there are positive signs in shorter timeframes.
Litecoin attempts to bounce back to support
On the weekly time frame, LTC price action shows a decline from its peak of $115 in July 2023. The decline led to a low of $56 in August. After a brief bounce and subsequent decline, Litecoin price created a higher low (green icon).
This bounce in Litecoin price confirmed a long-standing ascending support trend line. The trend line has existed for almost 600 days and coincides with a horizontal area that has served as support and resistance.
LTC/USDT weekly chart. Source: TradingView
Traders commonly use the Relative Strength Index (RSI) as a momentum indicator to gauge whether a market is in an overbought or oversold condition, guiding decisions to accumulate or sell an asset.
When the RSI rises above 50 and the trend is up, the bulls maintain an advantage; vice versa, if the reading falls below 50, the opposite applies. Currently, the weekly RSI is at 50, indicating an indeterminate trend.
Litecoin mining difficulty reaches all-time high
Today the Litecoin team announced that mining difficulty has reached a new all-time high. This is a sign of network growth and greater maturity.
Litecoin Mining Difficulty Chart Source:
Furthermore, the team announced that 18,000,000 ordinals have already been registered on the Litecoin network.
LTC Price Prediction: Has Price Started a Reversal?
Like the weekly timeframe analysis, the 2-day chart does not provide clear confirmation of the direction of the trend. However, the wave count is trending towards a bullish scenario.
Elliott wave theory, which involves the study of long-term recurring price patterns and investor psychology, is used to discern the trajectory of a trend. The prevailing wave count implies the completion of a five-wave upward move and an ABC corrective structure initiated in June 2022.
According to this scenario, Litecoin started another upward movement (white) in September 2023. LTC is expected to rise by 75% if these upward movements have the same duration, reaching the next resistance level at $122.
2-day LTC/USDT chart. Source: TradingView
Despite this bullish prediction for LTC price, it is crucial to note that a drop below the September 2023 low of $57.30 (red) would negate the bullish count. In such a scenario, Litecoin could drop by 30%, finding support at $48.
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