Litecoin has been making an impressive bullish run. On December 19, the uptrend reached a high of $124 but was resisted.
The altcoin has reached the overbought region of the market. The Relative Strength Index reached a high of level 77. It indicates that the coin has no more room to rally on the upside. This is one reason why LTC is correcting.
The crypto has retraced to the support above $100. On the upside, if the bulls sustain the current bullish momentum, the resistance at $124 will be broken. The altcoin will attain a new high of $140. Conversely, if the support fails to hold, and the price breaks below the $90 support, the coin will decline to $70 low.
The crypto is below the 80% range of the daily stochastic. It indicates that the coin is in a bearish momentum. On the downside, if price retraces and breaks below the trend line, LTC is likely to resume a downward move. It also means trend reversal.
Key Resistance levels: $120, $140, $160
Key Support levels: $80, $60, $40
The altcoin has found support above $ 100 as a fresh uptrend has resumed. Meanwhile, the Fibonacci tool has indicated an upward movement of the coin. On December 19 uptrend, the coin was resisted at $124, but the retraced candle body tested the 61.8% Fibonacci retracement level. At that retracement level, LTC is expected to reach a high of 1.618 Fibonacci extension level or a high of $157.86.
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.