In October, Litecoin has been fluctuating consistently between the demand zones of $52 and $60. The fluctuations have persisted for over a month due to indecision between the buyers and sellers about the direction of the price.
From the daily chart, the price is in the bearish trend zone; which means the bears have the advantage over the bulls. The price may continue its fluctuations in the next few days but if it fails to break above the $60 price level, there is the tendency for it to fall and find support at $50. However, if the support level is breached, LTC will further decline to the low of $40 price level
Litecoin is now approaching the oversold region of the Relative Strength index period 14 levels 38. The price was previously in the range-bound zone of the RSI. It appears Litecoin may further depreciate after a range-bound movement.
From the Fibonacci tool, a bull candle body tested the 0.786 retracement level. This signals that the market will fall to the low of 1.272 extension level which is the same as the $50 price level. The 12-day and 26-day EMAs are sloping southward indicating a downward movement of price.
Litecoin is currently in a tight range but the buyers are overwhelmed by the sellers each time the price reaches higher levels. The indicators have shown that the coin is likely to further depreciate. The price is below the moving averages which tend to fall. Nevertheless, if the price eventually falls and rebounds at the $50 support level, the coin will continue its range bound movement for a few days.
Key Supply Zones: $90, $110, $130
Key Demand zones: $60, $40, $20
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.