Surprisingly, after an impressive upward move to a high of $64, the bears struck and a breakdown occurred. From a high of $64, the downward move extended to a low of $48. At the low of $48, the bulls pulled back above $50.
The bulls are defending the support above $50. Although, it depends on the aggressiveness of the bulls and a successful push will bring back LTC to the high of $66. Conversely, if the bears suddenly break the $50 support, LTC will drop to either $40 or $35. This will portend negatively for Litecoin. In the meantime, price is fluctuating between $48 and $50.
Litecoin has fallen into the oversold region twice as a result of the recent breakdown. LTC is below 20% range of the daily stochastic. In the oversold region, selling has been overdone. It is expected that the bulls will emerge to push the pair upward. However, Litecoin will remain in the oversold condition if the bulls fail to emerge.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
Litecoin is in a precarious situation as it falls to a low of $47. It is the bull’s intervention that brought it to a high of $51. It is likely that the downward move has been exhausted because LTC is in the oversold region. What we are expecting is the emergence of bulls in the oversold region. Therefore it is unlikely for the continuation of the downtrend.
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.