Litecoin Price Analysis: Hitting Major Resistance

The Litecoin (LTC) price continues to surge following an impressive run over the past month — but is it ripe for a pullback? Let’s take a look.

Fibonacci Retracement

If we take a look at the Fibonacci retracement tool and draw a simple line from the all-time high to its most recent bottom, we can see that the price of Litecoin (LTC) against Bitcoin (BTC) has largely respected each channel while stair-stepping upwards.

After bursting through 0.011 BTC and consolidating the yellow channel, Litecoin subsequently burst through 0.014 BTC. Today, the price of ‘silver to Bitcoin’s gold’ bounced off what will most probably provide some serious resistance — 0.016 BTC. This level acted as previous support from April to mid-June 2018. Knowing that past support frequently becomes resistance, it stands to reason that LTC will have trouble breaking through this level without further consolidation and a healthy pullback.

Relative Strength Indexes

The daily relative strength index (RSI) has once again entered the overbought territory, which signals that the price of Litecoin (LTC) may need to cool off.

More alarming, however, is the severe bearish divergence which continues to rear its ugly head. As you can see in the