According to analysts, the weekly time frame technical analysis shows a bearish bias due to both price action and indicator readings. Also, price action is bearish as LTC failed to sustain its July exit. The price briefly climbed above the $100 target. However, it fell under shortly after. This confirmed the $100 area as resistance and started a sustained bearish move. LTC price is now trading at an ascending support line that has existed for 427 days. Since the line has been in place for so long, a bounce or break of Litecoin could set the future trend.
A break from the line could trigger a 20% drop to the $64 support area, while a different bounce could initiate a 33% increase to the $100 resistance. Also, the weekly Relative Strength Index (RSI) can reinforce the idea of an ongoing downtrend. The RSI has recently dipped below 50 after it was bearish during the previous divergence.
This metric occurs when a decrease in momentum is accompanied by an increase in price. It can also underline the potential for a bearish reversal. Litecoin experienced its third halving on August 2, which reduced LTC block rewards from 15 to 6.25. Despite the deflationary nature of the halving, the price of LTC dropped in the week following this event. Despite this setback, there is potential for a rebound in LTC’s price. Since the beginning of February, Litecoin has been trading in an ascending parallel channel. The token price has dropped slightly below the support line of the channel. However, the possibility of reversing and retrieving remains valid as gold is not closed for sure. In addition, the fact that the support line of the channel is aligned with the long-term ascending support line may increase the importance of the channel. If this view holds, a significant LTC price recovery from the support line of the channel can be expected, potentially pulling the price towards the $100 resistance area.