Key Takeaways
- Litecoin’s (LTC) price attempts to validate the $95 level as support.
- LTC has created a triple bottom pattern against Bitcoin (BTC).
- Can Litecoin bounce at support and outperform Bitcoin in June?
Litecoin has struggled mightily in the current market cycle. Since its bear market low, the LTC price has increased by only 150%, significantly underperforming Bitcoin (BTC).
However, all hope is not lost. The price consolidates above a critical support level that could catalyze a bounce. Additionally, the LTC/BTC has finally created a bullish pattern.
Let’s examine some charts and see what Litecoin may have in store.
Litecoin Price Returns to Support
The daily time frame analysis shows that the price of LTC has increased alongside an ascending support trend line since April 7.
While following it, LTC broke out from the $95 horizontal area and is attempting to validate it as support (green icon).
The horizontal support area coincides with the trend line, increasing its importance.
Therefore, the LTC trend remains bullish while the price does not break below both support levels.
However, technical indicators show some worrying signs. The Moving Average Convergence/Divergence (MACD) made a bearish cross (black circle).
The Relative Strength Index (RSI) returned to 50 and risks a breakdown. If that happens, the LTC price could also break down from its confluence of supports.
So, the daily time frame technical analysis makes it unclear if the Litecoin price trend is bullish or bearish.
Correction Could End Soon
The six-hour time frame suggests a breakout is likely due to the wave count and price action.
Litecoin’s wave count shows a completed five-wave increase (green) and an ensuing W-X-Y correction.
The movement is contained in a descending parallel channel, a sign that LTC is correcting instead of starting a new downward movement.
In the broader picture, the movement could be waves one and two in a longer-term five-wave increase (black).
The correction has been shallow, barely reaching the 0.382 Fibonacci retracement support level of $90.18.
A slightly deeper correction could take Litecoin’s price to the $85 support, a horizontal and Fibonacci level.
If LTC breaks down, the entire bullish structure will be at risk.
LTC to Outperform BTC?
Like the USD pair, the LTC to BTC chart also shows bullish signs.
While the price has fallen significantly since March, it created a triple bottom pattern at ₿0.0009.
The pattern combines significant bullish divergences in the RSI and MACD (orange), increasing its legitimacy.
Thus, the LTC price may outperform BTC soon, reaching the ₿0.0011 resistance area.
Bounce to Spark Rally
The Litecoin price trades inside a confluence of support levels. While it has fallen in the past ten days, the decline is corrective.
A bounce and breakout from the descending parallel channel could catalyze a significant rally.
The LTC to BTC chart has also created a bullish pattern, which could trigger an increase toward ₿0.0011.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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