Litecoin Struggles above $240 Support, May Face Deeper Correction

On April 17, Litecoin rallied to a $335 high. The altcoin retested the recent high twice before it dropped sharply on the downside. One possible cause of the sudden fall is because LTC has been trading in the overbought region for the past week.

Nonetheless, the market fell to $250 low and corrected upward to $280 high. At the recent high, it faced another rejection. This propelled Litecoin to further decline to $240 support. The bulls bought the dips as the altcoin resumed upward. 

The $240 support is a crucial support level for LTC/USD. The current support was the previous resistance level which was broken on April 9. The resistance was broken after two months of a downward correction. Litecoin will fall into deeper correction if sellers break the current support. The market will further decline to $200 or $159 low. Conversely, if the current support holds, it will signal the resumption of the uptrend. The altcoin will rise to retest the previous highs.

Litecoin indicator analysis

The current downtrend is testing the support line of the ascending channel. The selling pressure will resume if price breaks below the support level. The uptrend will resume if price bounces above the support line. Presently, the altcoin is below the 80% range of daily stochastic. 

Technical indicators:  

Major Resistance Levels – $262 and $264

Major Support Levels – $200 and $198

What is the next move for Litecoin?

At present, the altcoin is range bound between $240 and $280. Buyers are attempting to push prices above $280 high. However, if the bears break the $240 support level, the market will decline. On April 18 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the market will decline to 1.618 Fibonacci extension or the low of $159.64.  

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.