Litecoin price prediction: LTC clings to life, but outlook remains bleak

Summary:

The Litecoin price is walking a tightrope at $140.00. Furthermore, the technicals indicate that LTC could be heading back to $100.00

The Litecoin price is walking a tightrope at $140.00. Furthermore, the technicals indicate that LTC could be heading back to $100.00.

Litecoin is trading at $140.90, down $3.05 (-2.78%).

Despite Ethereum’s charge skywards over the last week, LTC has traded broadly sideways. Of course, the Litecoin price is more correlated to Bitcoin than ETH.

Over the weekend, Bitcoin was surprisingly strong. However, the rally faded yesterday evening, and BTC has drifted $1,500 lower from its $35,800 high. Furthermore, the short time frame charts appear to be breaking down. This may heap additional pressure on Litecoin.

Litecoin price forecast

Looking at the daily chart, there are some clearly negative developments. Firstly, the Litecoin price is below the major, 50, 100, and 200-day moving averages ($170.90, $188.73 and $178.36). Furthermore, the 50-day has crossed beneath the 100 and completed a death-cross below the 200 DMA.

Secondly, LTC has been locked in a downtrend since the 21st of May. This restrictive line is currently visible at $155.00. This should be viewed as the first resistance level.

Furthermore, Litecoin has been building a bear flag formation. The lower end of this pattern is at $140.00 and crucially just below the current price.

If Bitcoin continues lower today, the Litecoin price is likely to lose this important support level. Should that happen, a return to the 22nd of June low at $104.17 looks possible.

As long as LTC stays below the trend line, and more importantly, the key moving averages, the outlook will continue to be negative.