Litecoin Drops to $28 Support, Faces Further Decline

For the past two days, Litecoin has been fluctuating between $50 and $48 before the downward move. Currently, the market has dropped to a low of $28 as of March 12. The price makes a sharp drop and breaks the $40 horizontal line to close below it.

Litecoin has fallen into the oversold region of the market. The downward move has been temporarily suspended as the bulls make an upward move. On the upside, if the bulls are able to push price above $40 resistance, LTC will resume an upward move. Conversely, if the current move is repelled, LTC will continue its downtrend.

Litecoin Indicator Analysis 

The market has fallen below the 20% range of the daily stochastic. The implication is that Litecoin is in the oversold region of the market. The previous bull market has also been erased. In the oversold region, buyers are expected to appear to push LTC upward. The upward movement will be hampered if the bulls fail to emerge in the oversold region.

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

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

What Is the Next Direction for Litecoin?

Litecoin is in a bear market and the coin is seriously in the oversold region. Selling has been overdone. Sellers are ready to short further if the bulls fail to hold price or break the current resistance. Traders should wait and be on the lookout whether a retest will occur at $40 resistance or the bulls will break the resistance.

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.