Matthew Dixon, CEO of Evai, has shared insights on Litecoin’s (LTC) price trends, signaling potential downward pressure despite its recent breakout. Dixon’s tweet highlights the existence of divergence signals, which may portend an impending LTC price fall.
Lately, Litecoin has shifted in price from around $60 to $90. In spite, a downward-sloping resistance line that has been checked numerous times indicates that the price has encountered resistance.
Currently, LTC is priced around $81, which suggests it is approaching a critical point near this resistance zone. A break above this level could indicate a bullish continuation, but the divergence signals raise concerns about a potential pullback before any further upside.
Key support zones for LTC are located around the $60-$70 range, where the price has previously consolidated. Notably, the price has repeatedly recovered from this level and found some stability around $75. These might be crucial in deciding if Litecoin can continue to rise or see a more substantial reversal.
What you'll learn 👉
Litecoin’s Divergence Signals Indicate Weakening Momentum
Matthew Dixon’s tweet sheds light on two key divergence signals present in Litecoin’s chart. Hidden Bearish Divergence occurs when price action shows higher highs, but the RSI forms lower highs, suggesting weakening bullish momentum.
However, Regular Bearish Divergence occurs when the price hits a new high but the RSI does not create a new high in response. This suggests that the upward momentum may be losing ground.
These two divergence patterns are regarded by traders as warning indicators that suggest a potential short-term market decline. With LTC currently near a critical resistance level and these divergence signals in play, the market could experience a shift in direction if these trends continue.
Read also: Where Is Cardano (ADA) Price Headed? Elite Analysts Weigh In
RSI and Moving Averages: Key Indicators to Watch
Litecoin’s recent technical indicators provide mixed signals. The RSI, sitting around 65.89, is in the neutral zone but approaching overbought levels. While the RSI shows bullish divergence, its movement towards overbought territory suggests that LTC may face resistance soon.
Additionally, the 50-day MA (blue line) has crossed above the 200 one (orange line), a bullish signal known as the “Golden Cross.” This crossover points to positive momentum, but the recent divergence signals could offset the optimism this indicator typically brings.
Litecoin’s technical chart presents a mixed outlook. While some indicators suggest the potential for upward momentum, the bearish divergence patterns and resistance at key levels may lead to a price correction.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
