About 48 hours ago, the downtrend corrected as the coin headed to the $42 supply zone. Previously, LTC dropped to $39 on November 20 but has moved up to $41. The price movement has been insignificant because of the low volatility. Litecoin is in the bearish trend zone and if defended aggressively by the bears the downtrend will continue.
From the current low, it is expected that any further break down will catapult LTC to revisit the $36 low. Meanwhile, on the upside, LTC will make a positive move, if the current bullish move is sustained. Besides, a break above $42 will ensure its continuous move.
It appears LTC is pushing higher as per the stochastic which has a 50% range. This explains that LTC is trending higher as the price revisits the highs of $42 and $50.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
The upward move has been consistent since December 18. Litecoin is approaching the $42 supply zone. LTC will rise to the former range of $42 and $50 if it jumps over the high of $42. As Litecoin makes impressive moves, traders should look out to buy setups. Meanwhile, stop-loss orders should be placed at $36 low.
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.