Litecoin crashed to $43 after the last bearish impulse. Previously, the coin had been trading above $50 for over a month before the market went up. This sudden price jump hit resistance at $65. After a pullback, the bulls retested the resistance to form a bearish double top pattern. This pattern formation led to a further drop of Litecoin to a low of $43.
After falling to its current low, Litecoin moves up again but faces a hurdle at the $50 resistance level. Earlier the $50 price level had provided support before turning into resistance level. In the meantime, the pair fluctuates above the support of $43. Any attempt by the bears to break this low will result in another low of $36.
The bulls broke the downtrend line and commenced a bullish move. This uptrend was short-lived as the bulls were resisted at $65. The stochastic is horizontal above the 20% range meaning that the bullish momentum is weak.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
Litecoin had earlier attempted to reverse after breaking the downtrend line. It came under another selling pressure as the market resumes its downtrend. The pair consolidates at its low above $43. It fluctuates within a price range of $43 and $50. A breakdown or breakout will determine the direction of the coin.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.