Today, Litecoin is trading at $58 after facing rejection at a high of $60. Since August 2, LTC has been range-bound between levels $56 and $58.
Surprisingly, buyers have been unable to push above the $60 resistance. After several unsuccessful retests at the resistance, the market is still consolidating above $56.
The bottom line is that Litecoin is likely to encounter a breakdown or breakout. The market will shoot up when the price breaks the $60 resistance. Firstly, the price will retest the $65 high to break it. Secondly, LTC will have an accelerated movement to a high of $76 if the overhead resistance is broken. Conversely, LTC may face a bearish reaction, if buyers fail to scale above the $60 resistance. The market may plunge to $47.50 low. Otherwise, the range-bound movement will continue.
The daily stochastic is indicating that the market is below the 75 % range and it is bearish. This is contrary to the price action which indicates that price is fluctuating between $56 and $60. Meanwhile, the EMAs are sloping upward indicating the uptrend.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
Litecoin is still range-bound below $60 resistance. From the daily chart, a red candle body tested the 0.382 Fibonacci retracement level. The 0.382 retracement level indicates that the market will rise to a 2.618 extension level or the $76 high. This uptrend will be possible once the $60 and $65 resistances are breached.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.