Litecoin drops to the bottom of the chart in an attempt to break the previous low. The support at $50 may hold which may lead to a sideways move.
Yesterday, Litecoin dropped to the support at $50. The coin made a pullback after being resisted. This was the turning point for the price in September and October. Today, the market is resuming the selling pressure. It is important to note that if the bears break the support at $50, the downtrend has resumed. In other words, Litecoin will further depreciate to a low of $47. Meanwhile, if the support holds, the pair is likely to be in a sideways trend for a few more days.
Litecoin Indicator Analysis
Litecoin is trading in the oversold region below 20% of the daily stochastic. The market is said to be in a strong bearish momentum. The EMAs are now sloping southward confirming the downward move. The price is likely to break the support line of the channel; if it does the coin will depreciate and be out of the range-bound zone.
Litecoin is likely to resume its downtrend as the bears break the previous support at $50. The market has been holding at this support for the past two months. Now if support cracks, LTC will fall to a low at $47. Traders should initiate their long orders at the turning point of the market. However, if the support holds, the coin may trade in a sideway before moving up to retest the resistance at $64.
Key Supply Zones: $80, $100, $120
Key Demand zones: $50, $40, $20
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.