On July 5, Litecoin rebounded twice as price rallied to $46 high. Ironically, yesterday the coin had the second breakdown as price dropped to $41 price level. In other words, the bullish run of Litecoin has been erased by the bearish run.
The coin has fallen to $41 and made an upward correction. The upward move is marginal as the crypto resumes consolidation above $42 price level. Incidentally, the current support was where the coin had earlier rebounded to reach the $46.
On the upside, Litecoin can quickly return to its previous high of $46, if the coin rebounds. Technically, history can repeat itself, if another rebound occurs above $42 support. A rebound above $42 will catapult LTC to $46 high. The momentum can extend to break the $51 overhead resistance. In the meantime, price is consolidating above the $42 support as the market waits for another rebound.
With the recent breakdown, price breaks below the EMAs. This suggests a further downward movement of prices. The market is in bearish momentum as it is below the 50% range of the daily stochastic. The EMAs are sloping horizontally indicating that LTC is consolidating.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
The recent upward move has been erased by the price breakdown. The market has returned to the previous price level. On the downside, if the bears break the $42 support, LTC will be in jeopardy. The coin risks further depreciation to the low of $39.
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.