Litecoin Drops Sharply, Approaches the Low of $204

The price of Litecoin (LTC) has fallen sharply after failing to hold above the $232 peak. Today, the altcoin has fallen to its previous low of $208 and is trying to find support above it.

Prior to the recent plunge, Litecoin was in an overbought condition for the past three days. The uptrend will continue if the current support holds. The market will rise and retest the high at $232. LTC/USD will continue to fall if the current support at $208 is broken. This would catapult the altcoin to the low of $180. However, buyers are struggling to defend the current support at $208. Meanwhile, LTC/USD is trading at $210 at the time of writing.

Litecoin indicator analysis

The LTC price is at level 62 on the Relative Strength Index for period 14, indicating that Litecoin is in the uptrend zone and is capable of resuming the uptrend. The LTC price has fallen below the 20% range of the daily stochastic. Litecoin has reached the oversold zone of the market. Buyers are expected to show up. This suggests that the market is in a bearish momentum.

Technical indicators:

Major Resistance Levels - $500 and $540

Major Support Levels - $180 and $140

What is the next move for Litecoin?

Litecoin is in a downtrend. The bears are retesting the previous low to break it. Meanwhile, the downtrend from September 6 has shown a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that LTC will fall to the Fibonacci extension level of 1.618 or $204.48. The price action shows that the LTC price has broken below the previous support as the altcoin approaches the 1.618 Fibonacci extension.

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.