The Litecoin (LTC) price is reclaiming a crucial horizontal support area at $54. Doing so would have bullish implications for the future price.
The Litecoin price has been falling since reaching a high of $73.36 on Nov. 7, following the rest of the crypto market. This created a long upper wick, a sign of selling pressure (red icon).
The LTC price decreased sharply the next day, falling below the $64 resistance area. This also rendered the previous breakout a deviation. The decrease led to a low of $47.60 on Nov 9.
However, the Litecoin price bounced sharply afterwards and has increased in the past 24 hours. It is in the process of reclaiming the $52 horizontal support area. There is yet to be a daily close above this area, casting some doubt whether the reclaim will occur.
Additionally, the daily RSI has generated a bullish divergence (green line), and its trend is still intact. However, the indicator is trading below 50, a bearish sign.
As a result, it is not certain if Litecoin will break down from the $52 area or reclaim. Whichever occurs will likely determine the direction of the future trend.
Litecoin Price Prediction: Wave Count is Shifting Bullish
Due to uncertain price history, two potential wave counts are in play. The bullish one suggests that the increase beginning on June 14 was part of a leading diagonal (black). This means that a bullish reversal started on June 14.
Afterwards, the entire movement since Sept. 20 (highlighted) was an irregular flat correction (red). If so, the correction is complete, and a new upward movement will begin.
While this count would be confirmed with an increase above $73.36 (red line), just holding above the $54 area would still go a long way in indicating that it is the correct count.
The bearish count suggests that the increase was a corrective structure instead (black). If so, the Litecoin price has begun a new downward movement that will take it to a new yearly low.
Therefore, since the reclaim of the $52 area also has implications for which of the wave counts is correct, whether the price reclaims it or breaks down below it will determine the Litecoin future price.
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