In the previous week, Litecoin made remarkable moves but failed to break the overhead resistance. Eagerly, a breakout above $50 would have propelled the coin to rally above $60. Rather, Litecoin was repelled at $48 and it dropped to $44 low. The consequence is that LTC will face another selling pressure.
Conversely, Litecoin will be compelled to fluctuate between $40 and $50 for a few more days. In the interim, after its fall, the price corrected upward before coming down. It implies that the selling pressure may continue. A drop below $39 is possible if it breaks below the lower price range.
At the moment, the price has fallen to the support above the EMAs. The selling pressure will end while the bulls take another initiative to move up. On the other hand, the price may break below the EMAs which will signal the resumption of a downward move. The market also drops to level 54 of the daily RSI. This indicates that the coin may rise because it is above the centerline 50.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
Litecoin is trading below the overhead resistance. It is likely that the coin may continue a sideways move in its former price range. The price is presently above the EMAs, and it tends to rise. Nonetheless, if the bulls fail to initiate another bullish move, a sideways move will ensue. Traders should wait for the direction of the market before trade initiation. Meanwhile, stop loss should be taken down to $39 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.