• Litecoin price closes with a Doji candlestick, indicating an interruption in the trend.
  • Significant Fibonacci level restraining rally from reaching the all-time high.
  • Litecoin price on pace to close with fourth-largest weekly gain since September 2020 low.

Litecoin price is currently 20% below 2017 high while trading in an ascending channel since the September 2020 low. Potential exists for LTC to reach the all-time, but the intra-day charts indicate that the boost in the early part of the week is exhausted, and Litecoin price is poised to at least retrace some of the strong performance.

Litecoin price is close, yet so far from fresh highs

A Doji candlestick pattern is formed when the open and close of an asset price are identical or nearly identical. It creates a real body that is close to being a horizontal line. The connotation of the candlestick pattern is that the market is in equilibrium and governed by indecision. It is a warning of a reversal and occurs anywhere during a trend, but its value is limited within a narrow consolidation. 

On the 12-hour chart, Litecoin price closed with a Doji candlestick pattern and slightly above the critical 78.6% retracement level of the 2017-2018 bear market at $334.86, augmenting the importance. The inclusion of the Doji candlestick within this leg of the multi-month advance is a warning sign for traders and urges the need to consider the potential of a notable reversal in Litecoin price. A trade below the Doji will activate the bearish outlook.

Support will manifest at the ascending channel’s midline at $297.00, followed by the April low at $207.10. A further unraveling of Litecoin price would target the channel’s lower trend line at $197.80, representing a 40% in price and break in the trend of higher lows since October 2020.

Traders should also be aware that the weekly Relative Strength Index (RSI) continues to show lower highs, producing a bearish momentum divergence versus price. Another warning sign, but at a different time interval.

LTC/USD 12-hour chart

LTC/USD 12-hour chart

Several cryptocurrencies have managed to test their longstanding all-time highs in the last few weeks or months, such as SXP (Stripe), and it is undoubtedly an outcome to be expected for Litecoin price in the coming days or weeks. There are no technical levels to offer resistance, so a rally continuation can not be steadfastly overruled. Potential targets will need to be evaluated at the time of a new high to ensure real-time indicator values.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP price eyes deeper losses, as 200-DMA looks at risk

XRP price is licking its wounds so far this Saturday, having reached the lowest in three months at $0.7691 on Friday. XRP bears are set to breach the 200-DMA, with a test of May lows likely. Ripple confirmed a symmetrical triangle breakdown on the daily chart. The path of least resistance appears to down despite the tepid bounce.

More Ripple news

SafeMoon Price sees a dead cat bounce before the next downswing kicks in

SAFEMOON price is fading the recovery momentum this Saturday after falling for four days in a row earlier this week. Technical up on the 4H chart paints a bearish picture. RSI remains bearish, as more weakness likely in the near term.

More SafeMoon News

DOGE price eyes $0.1950 if key 100-DMA support caves in

Dogecoin sellers refuse to give up, as the bearish momentum extends into the fifth consecutive day on Saturday. Dogecoin price eyes a break below key 100-DMA support on the daily chart. The May 19 flash crash lows at $0.1950 remain on the sellers’ radars. 

More Dogecoin news

Cardano price stalls four-day losing streak, but not out of the woods yet

Cardano (ADA/USD) is snapping its four-day losing streak, attempting a minor recovery on Saturday amid a sluggish tone seen across the crypto market. ADA price is down about 3% over the week, having risen 750% from the start of the year. 

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP