Litecoin is up by almost five per cent in today’s trading session. However, in the past five sessions, the prices have been alternating between the bullish and bearish trends in each consecutive session, making the prices trade sideways.
After the recent sell-off triggered by a cryptocurrency industry market crash, Litecoin prices looked poised to be heading towards the $40 price level. However, the downward momentum was not strong enough to push it past the $53 price level to the downside. Since May 12, after prices failed to break the $53 price level, Litecoin started a slow climb, resulting in a price gain of 27 per cent.
Today’s trading session has seen a significant price increase of almost five per cent. However, the price increase is unlikely to wipe out yesterday’s nine per cent drop. Looking at the chart below, the prices have also been trending sideways for almost a week, within a very narrow price range. After a recent breakout from a descending channel, this set off an aggressive downward move, which resulted in a 40 per cent price drop.
The chart also shows that indicators such as the Williams Alligator are still showing strong bearish signals despite the recent price gains. The historical price action also shows that, for the past few months, each time there was an aggressive push to the downside, the markets corrected by forming a bearish flag before the next big aggressive downward push.
Therefore, my Litecoin price prediction is I expect the prices to continue falling. This is despite the current trading session being aggressively bullish. My prediction is based on previous price actions that formed a bearish flag. Therefore, the current push to the upside is not a trend reversal but a bearish flat. I expect the prices to drop to the recent $53 price low.
However, my analysis will be invalidated if the prices trade above $70 by the end of today’s trading session. It will also mean a likely move to the upside.
This post was last modified on May 19, 2022, 15:52 BST 15:52