October 9 Litecoin Price Analysis: Will 60 Dollars Remain as Support or Will It Fall?

Crypto News- A deep dive into Litecoin’s weekly timeframe technical analysis unveils an interesting journey. In June, LTC broke free from a 770-day descending resistance trendline, surging to a new annual high of $116.

October 9 Litecoin Price Analysis: Will 60 Dollars Remain as Support or Will It Fall?

However, this surge created a separation between the trendline and the $105 resistance region. Regrettably, Litecoin couldn’t sustain this upward momentum and deviated above the $105 resistance (as indicated by the red circle) before experiencing a sharp drop below it.

August saw LTC’s price dip below the long-term trendline, and it currently hovers just above the $60 horizontal support area. The weekly Relative Strength Index (RSI), a momentum indicator aiding traders in assessing overbought or oversold conditions, influences their buying or selling decisions.

A reading above 50, accompanied by an upward trend, is favorable for the bulls, while a reading below 50 suggests a bearish trend. Presently, the RSI resides below 50 (noted by the red icon), trending downwards, indicating a bearish sentiment.

Litecoin Price Prediction: What Lies Ahead?

A scrutiny of the daily timeframe yields mixed readings, tilting slightly toward the bearish side.

The primary reason behind this bearish sentiment stems from Litecoin’s price behavior. On October 4, Litecoin breached an ascending support trendline, signaling the conclusion of its prior upward trajectory. This descent aligns with the broader trend observed in the cryptocurrency market.

Additionally, Litecoin’s response to the minor resistance at $68 has been bearish. In August, LTC briefly exceeded this level but failed to break through it on two occasions before sliding below the ascending support trendline.

Despite the bearish price action, there’s a glimmer of hope for a bullish trend reversal, thanks to the RSI. The bullish divergence trendline (depicted by the green line) that preceded the previous upswing remains unbroken. A bullish divergence materializes when surging momentum accompanies a price decline, often hinting at a trend reversal.

However, it’s essential to recognize that this divergence trendline can’t fully negate the bearish price action. Should the decline persist, LTC might witness another 9% dip, possibly testing the minor support at $58.