Litecoin made a bold move as it traded into the range of between $42 and $50. In the previous week, the bulls impressively reached a high of $44 but were resisted. The coin retraced and found support at $42. Incidentally, the coin has come back to its original range to resume fluctuation. It is expected that the demand zone at $42 will hold, if it does, Litecoin will reach the high of $50 and break it.
More so, the coin will continue ahead into the previous highs if the current bullish movement is sustained. Regrettably, it will be a set back if the coin slides below $42 due to another round of selling pressure. Hopefully, the price is fluctuating above the current support in readiness for an upward move.
The bulls successfully broke above the 12-day EMA but were resisted by the 26-day EMA. The price may break the 26-day EMA and reach the bullish trend zone. At present, Litecoin is above 80% of the daily stochastic range. This signifies that the price is in a strong bullish momentum. The pair is expected to reach the $50 and $60 price levels if the current momentum is sustained.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
Litecoin has impressively moved up from the bottom of the chart. With a sustained bullish momentum, the pair is expected to continue its bullish move, though it may be hampered at the $50 price level. Traders are to look out for a buy setup to initiate long trades with the understanding that the $42 support level holds. A stop-loss order should be placed below $39.
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.