Litecoin (LTC) has broken below a crucial support level and is likely to continue to decline in the near future.
Litecoin Halving, also known as Litecoin Block Reward Halving, is an event that occurs approximately every four years in the Litecoin network. It is a programmed reduction of the block reward that Litecoin miners receive and typically has a positive impact on LTC’s price. This event is scheduled to take place on August 3, 2023, which is approximately 86 days away.
Double top pattern
The price of Litecoin (LTC) has risen since reaching a yearly low of $41 in June 2022. It has formed an uptrend structure during this period and reached a yearly high of $105.7 in February 2023.
However, the price has failed to break through the resistance level at $100 and has been rejected twice. This action has formed a double top pattern, which often leads to a reversal of the trend to a decline.
In addition, the second rejection created a bearish engulfing candlestick and led to continued decline in the following two weeks, another bearish signal.
Therefore, the LTC price is likely to continue to decline to a crucial support level at $63.
The weekly RSI indicator supports this possibility as it formed a bearish divergence prior to the bearish action and has now dropped below 50.
Breaking short-term uptrend structure
The daily chart also supports the possibility of further decline from the weekly timeframe. It shows that the LTC price has broken below the important support level of the recent uptrend at $85 and confirmed it as resistance today (red arrow).
The daily RSI indicator is approaching oversold territory and sloping downwards, indicating that the bears is gaining control.
Therefore, the LTC price is likely to decline to the nearest support level at $75 in the short term.
Conclusion
Technical signals indicate that the LTC price will continue to decline in the near future. The nearest target is $75 and further down to $63.
As the LTC halving approaches, the bulls is likely to buy strongly when the price drops to the $63 support level.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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