Litecoin (LTC) price has increased since July 10. However, it is currently trading inside the $100 sideways area and it is likely correcting as resistance.
There are mixed signs of price action and indicator readings. Therefore, the response to this area will be very important in determining the future trend.
Litecoin Price Jump – Will it Clear the Resistance?
Technical analysis of the daily time frame shows that LTC price has formed a bullish candlestick (green icon). On the other hand, it shows that it has increased since July 10. The long lower candle and the bullish close confirmed the $93 support area. It also showed that the bulls are starting to take over.
Currently, LTC price is trading inside the $100 horizontal area. This is a very important level of resistance because it has been rejected three times since the beginning of February.
Although the price seemed to have broken out on June 30 (green circle), this was a divergence as LTC dropped below the zone a few days later.
The daily RSI is uncertain. Traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and helps them decide whether to buy or sell an asset.
If the reading is above 50 and the trend is up, it gives the bulls an advantage. Conversely, if the reading drops below 50, the opposite is true. When the RSI is above 50, it is bearish. Hence, these mixed signs fail to confirm the direction of the trend.
Therefore, the future LTC price prediction will likely determine whether the price will close or decline above the $100 area. If rejected, the next closest support is expected to drop to $82.
On the other hand, a breakout could take LTC price to the next resistance at $130.