LTC faces tough resistance at $140; Back to support or new highs?

20 Jun, 2019
by Lourens Pepler
Price Analysis
LTC faces tough resistance at $140; Back to support or new highs?

It's been more than a week that LTC has been hovering around the $135 level and struggling to break $140. With momentum looking like it wants to move down, should we now expect a retrace back to support, or will this momentum hold and push LTC onto new highs? This is LTCs price analysis for 20 June 2019.

Highlights:

- $140 tough resistance

- Momentum indicators pointing down

- Possible ramp for the actual impulse wave to come?

Starting off with the daily chart, to look at the entire uptrend of this past few months, we can see that RSI is struggling to reach new highs and is now starting to move away from the 70 RSI.  We are also able to spot divergence that has formed this past 30 days, which could indicate a reversal is on the way. Divergence is when price makes new highs, but RSI makes lower highs, indicating a reversal in momentum.

If we also quickly take a look at Stochastic RSI, we can see that it is also moving downwards after reaching its ceiling above 80. Since both momentum indicators are pointing down, tells us that we should expect price to fall down with it.

Possible support zones for a decline would first be at the $120 area. This is a price level that has not yet been retested, making this our main support for now.  A further dip in momentum could bring LTC back to $100, which should be strong support at this point.

LTC/USD chart provided by Tradingview

Since RSI is still within the 60s, we will look at the bullish scenario as well for LTC. With price pushing sideways for a week now, could indicate that support has built up, making LTC ready to breakout to new highs.

Looking back to previous highs from the 2018 bear market, we are able to spot two price points would could act as resistance for a possible further increase in price. The first price resistance level we have is at $185, and above that we have $238.

With LTC’s halving also on the way, could add more buying pressure and cause a breakout onto our targets.

LTC/USD chart provided by Tradingview

What are your thoughts on LTC? Do you believe we have seen the highs for now, or was this entire run up to $135 simply the ramp for the actual impulsive move to come? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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