Litecoin (LTC) is in a downtrend and has fallen to the low of $142. Support at $142 has not been breached since September 28. This is a historical price level and support where Litecoin is rallying to resume an uptrend.
However, during the price collapse on December 4, the bears partially broke the crucial support while the bulls bought the dips. Today, LTC/USD is trading at $148.29 as of press time. On the upside, buyers are trying to push the LTC price higher. They will likely encounter initial resistance at $165. However, if Litecoin breaks above the $148 support, the bullish momentum will break through the initial resistance at $165 and move up to $200. A breakout above $200 will take the cryptocurrency out of the downward correction. The altcoin will now resume its upward momentum.
Litecoin indicator analysis
Litecoin is at the 34 level of the Relative Strength Index for period 14. The market is still in the downtrend zone and below the 50 midline. The cryptocurrency is vulnerable to a downside decline if selling pressure resumes. The 21-day and 50-day moving averages are down, indicating a downtrend. Litecoin is above the 25% range of the daily stochastics. Stochastic bands are running horizontally above the 25% range of the price indicator.
Technical Indicators
Resistance Levels: $240, $280, $320
Support Levels: $200, $160, $120
What is the next move for Litecoin?
Litecoin is in a downtrend as altcoin approaches the oversold region. Selling pressure is likely to end or ease to the downside. Meanwhile, a downtrend started on November 28. A retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that the LTC price will fall to the Fibonacci extension level of 1.272 or $153.76.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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