Litecoin has made a gradual upward move as it approaches the downtrend line or retests the $50 overhead resistance. In recent times, the upward move has been plagued by several setbacks.
The positive aspect of the downtrend line is that if the price breaks, and closes above it, it will signal the resumption of the uptrend. Conversely, if price turns away from it, there will be a bearish reaction that will repel it to its previous low.
Litecoin has suffered several downward moves after buyers failed to break the downtrend line. Today, the bulls are making positive moves to break above the downtrend line. There will be a possible retest of the $50 overhead resistance if the bulls are successful. However, if price turns down from the downtrend line, LTC will slump to $43 low. Presently, buyers are making concerted efforts to sustain the upward move.
The market is presently in a bullish momentum as the crypto is above the 40 % range of the daily stochastic. The price is making a positive move as it attempts to break the resistance line which is called the downtrend line. Already, the price is above EMAs which indicates the rise of the coin.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
Litecoin's subsequent upward move will depend upon the breaking of the downtrend line. Also, the sustenance of price above the EMAs will ensure consistency in its upward move. As buyers push the price upward, sellers lose control at the lower price levels.
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.