Litecoin (LTC) has been struggling to remain steady for several months now. After trading above $100 in February 2023, the price dropped and created a double top pattern, a bearish indication. In addition, the weekly Relative Strength Index (RSI) was bearish which further confirmed the double top. However, the short-term six-hour time frame analysis offers a spot of hope as the LTC price is trading inside a descending parallel channel and remained above $79 support.

In technical terms, the double top pattern is an indication of reversal, typically after a sustained uptrend. When the price movements created the two peaks, it confirmed the same level of resistance and the bears took over, ultimately leading to the current price decline. The weekly Relative Strength Index (RSI) was bearish which suggested that the market favored selling rather than buying.

But the analysts have been showing hope with the short-term six-hour time frame. The price of LTC is trading inside a descending parallel channel and has reclaimed the $79 support area, which is an important support area created by the horizontal support and 0.618 Fib retracement support. Also, the RSI on the six-hour time frame is rising and has moved outside of oversold zone which signals buyers taking control. If the price breaks out from the channel, it could reach the resistance of $92.

Certain crucial developments in the upcoming days will decide whether the double top pattern will lead Litecoin to another bearish decline or if the bulls will be successful in denying the bearish prediction and propel it up towards the test of resistance at $92.



Other News from Today