Litecoin (LTC) has dropped significantly to a low of $98.50 after rejecting resistance at $150. The price drop on January 22 has pushed the cryptocurrency into the oversold region. This suggests that buyers will emerge in the oversold region.
Meanwhile, as the market fell to a low of $98, the bulls bought the dips and the price pulled back. The upward correction was stopped at the high of $112. Nevertheless, the altcoin is now fluctuating between $98 and $112.
If the bulls break the initial resistance at $112, the market will rise to a high of $150. If the buyers overcome the resistance at $150, LTC/USD will come out of the downward correction. However, further downward movement is unlikely as the market has reached the oversold zone. There are also two candlesticks with long tails indicating the current support levels. The candlesticks indicate that the current support is a strong buying pressure point.
Litecoin is at level 30 on the Relative Strength Index for period 14, indicating that the LTC price is in oversold territory. The downtrend is likely to subside. The LTC price bars are below the moving averages, which indicates further downward movement. The cryptocurrency is above the 25% area of the daily stochastic. This indicates that the market is in a bullish momentum.
Resistance Levels: $240, $280, $320
Support Levels: $200, $160, $120
Litecoin is pushing into the oversold area of the market. The cryptocurrency has reached the oversold area of the market, which allows for a possible recovery. On December 4, the downtrend saw a retracement candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that Litecoin will fall to the 1.272 Fibonacci Extension level or $84.11. Based on the price action, the market has reached a low of $104.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.