On July 16, 2019, the Litecoin price reached a low of ₿0.0079. It began an upward move and traded close to ₿0.01 until the beginning of August. Since then, it has been decreasing, reaching lows close to ₿0.007.
How long will this decrease continue? In order to answer this question, we are going to analyze the Litecoin price in different time-frames alongside technical indicators.
Litecoin Price: Trends And Highlights For August 8
Previous Movement
A look at the three-hour time-frame shows that the price has been trading inside an ascending triangle.
On August 1, the Litecoin price broke down from this channel.
It has been decreasing since.
Let’s take a look at a longer-term time-frame to try and predict where it is going to go next.
Descending Support Line
A look at the daily time-frame shows us that:
Due to the fact that the support line coincides with the support area and the price is trading above both, the first impression is that the Litecoin price will decrease until it reaches it.
A similar sentiment is given by an analysis of moving averages (MA):
Both a long- (100- and 200-period MAs) and a short-term (10- and 20-period MAs) bearish cross has occurred.
This is often an indication that the price is in a downtrend.
The RSI does nothing to refute this scenario:
While it has been generating bullish divergence during the successive lower lows in price, the recent decrease broke the upward sloping trend line.
The combination of these indicators suggests that the Litecoin price will continue to increase until it reaches the support area.
Target
Using the Fibonacci retracement tool can give us a more accurate target.
The 1.618 fib level is right in the middle of our support area at ₿0.007.
Additionally, we can see the Litecoin price made an unsuccessful attempt at initiating a reversal on August 5.
The rapid decrease succeeding it indicates that there is selling pressure.
Litecoin Price Summary
The Litecoin price is following a descending support line.
According to our analysis, it is likely to continue decreasing at the rate predicted by the line until it reaches the support area outlined below.