Litecoin (LTC) Brokes Out Resistance, Can Price Surpass $100 Again?

    After being rejected from long-term horizontal resistance, Litecoin (LTC) price has reached a diagonal support level.

    The LTC price has undergone a swift decrease and is struggling to find support, with the downward movement expected to continue. 

    The price may find support at the nearest Fibonacci level. The recent movement indicates bearish signs for Litecoin’s price at its range high. Although the LTC price has increased since June 2022, it failed twice to break out from the $100 horizontal resistance area, creating a double top and a bearish engulfing candlestick. The latter negates the entire increase from the previous period, confirmed by a close below the opening of the previous period. 

    If the decrease persists, the long-term ascending support line at $74 may provide support, but if the price gains momentum and breaks out, it could reach the next resistance level at an average price of $130.

    LTC/USDT Weekly Price Chart. Source: TradingView

    LTC Price Prediction

    Based on technical analysis from the daily time frame, the LTC price is predicted to continue its downward movement, with the price breakdown from a short-term ascending support line being the first reason for this. The line had been in place since March, and its breakdown suggests that a corrective movement has started. 

    The daily Relative Strength Index (RSI) has also decreased and moved below 50, indicating bearishness and supporting the continuation of the downward movement. If the decrease persists, the 0.618-0.786 Fib retracement support levels suggest that the closest support will be between $73 and $80. 

    LTC/USDT Daily Price Chart. Source: TradingView

    According to the Fibonacci retracement levels theory, the price tends to partially retrace or return to a prior price level before continuing in its original direction. The $73 Fib support coincides with the long-term ascending support line, making it more likely to act as the bottom. 

    Although the Litecoin forecast is bearish, a weekly close above $100 will indicate a bullish trend and a movement to $130 will be the most likely outcome.

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