Litecoin had earlier shot upward in its recent rebound. The price is retracing after reaching a high of $46.
In its earlier uptrend, the coin has been trapped between $41 and $42 for over a week before the eventual breakout. The price broke the $42 resistance and rallied to $46 high. The rally could not reach the $50 overhead resistance because the coin reached the overbought region of the market. In the overbought region, there was a bearish reaction.
The crypto fell to $44 low and resumed a fresh uptrend. The new uptrend is facing penetration difficult at the $44.50 resistance. This may cause further downward move. On the upside, if there is a strong bounce above $44, the momentum will propel the price to break the resistance at $44 and $46 then rally above the $50 overhead resistance. Litecoin will be compelled to a sideways move if the current resistance is not breached.
The recent retracement was because the coin was above the 80% range of the daily stochastic. LTC was in the overbought region as sellers emerged to push prices down. After retracement, price finds support above EMAs. However, if the support above the EMAs holds, Litecoin will resume a fresh uptrend. The crypto will rise as long as the price is above the EMAs.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
Litecoin’s upward move is intact if the bulls sustain the bullish momentum above the EMAs. On the downside, LTC will be weakened if the bears break below the EMAs. In other words, if price falls below $43 support, LTC will resume 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.