Litecoin has continued to frustrate crypto bears, with the sixth-largest cryptocurrency by market capitalisation extending its recent rally towards the $85.00 resistance level.
Litecoin price analysis shows that bearish MACD price divergence continues to build on the daily time frame, which may result in a reversal towards the $60.00 level.
Litecoin medium-term price trend
Litecoin broke above the $80.00 level last week for the first time since September 2019, as the recent rally in the LTC/USD pair continued to gain strength.
Litecoin technical analysis shows that the cryptocurrency has built substantial amounts of negative MACD price divergence on the daily time frame.
The MACD divergence extends down towards the $60.00 level. It is also noteworthy that LTC/USD is now at its most overbought since April 2019.
Looking at the medium-term upside, the $85.00 level is now the strongest area of resistance for Litecoin.
Watch out for continued weakness below the $77.50 level as a signal that the LTC/USD pair could be preparing for a much-needed downside correction.
Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a strong short-term bullish bias while trading above the $77.50 level.
The lower time frames show that a rising wedge pattern is currently in play, with topside resistance found at the $85.00 level.
The bottom of the wedge, around the $77.50 level, has been a key area that short-term bulls have been defending on pullbacks.
A sustained loss of this area could start the expected pullback towards the $71.00 and finally the $65.00 support area.
At present, waiting for sustained weakness under the $77.50 level appears to be the best strategy for short-term LTC/USD bears.
Litecoin technical summary
Litecoin technical analysis is showing that the cryptocurrency may need to stage a much-needed downside correction as bearish MACD price divergence needs to be reversed.
