Litecoin Breaches Overhead Resistance at $51, Faces Further Selling

Jul 28, 2020 at 11:18 // News
Coin Idol
Litecoin faces selling pressure

Litecoin has made an exceptionally bullish move as price broke the $51 overhead resistance. The resistance has remained unbroken since April.

Before now the bulls have been battling to break the resistance at $46 for the past three weeks. After breaching the minor resistance levels the bulls made three unsuccessful attempts at the $46 resistance. In its last attempt at the resistance, price pulled back to $44 low and rebounded to break the $46 high and then retest the $51 overhead resistance. 

At the $51 high, price pulled back to $47 low to propel Litecoin to rebound. The momentum has broken above the overhead resistance as the market reached a high of $56. The price pulled back to $53 support because of the selling pressure at the recent high. In the meantime, the coin is trading below $53 after the retracement. On the upside, if the bulls sustain a price above $50, the bullish trend will continue. However, if the bears break below $50, LTC will fall to the previous price range of $39 and $50

Litecoin indicator analysis 

The market has continued to rise as the price is above the EMAs. Price rebounded twice and broke above the support line of the descending channel. The coin is above 80% range of the daily stochastic. It indicates that the market is in the overbought region. Sellers may emerge at the overbought to push prices down.

LTC-CoinIdol (1).png

Key Resistance levels: $80, $100, $120

Key Support levels: $50, $40, $20

What is the next move for Litecoin?

The recent move of Litecoin has pushed the crypto out of the bottom of the chart. As the market reached its recent high, sellers are defending the $56 high. However, if the bulls fail to defend the current support, the coin may have a downward move.   

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