The price of Litecoin (LTC) has reached bearish exhaustion as it fell to the low of $54 on May 12. On May 12, the bulls bought the dips as the altcoin fell into an oversold area of the market.
Buyers emerged in the oversold region and drove prices higher. On May 13, LTC price corrected upwards to the high of $73.46 and continued its sideways movement.
The bulls could not overcome the May 10 resistance level. The May 10 price is the former support at $73. If the bulls break the resistance at $73, the market will go up to $107. However, at the $107 high, the bulls will face stronger resistance. If the bulls fail to break the resistance at $73, the current trading range will continue. LTC/USD is trading at $69.65 as of press time.
The Relative Strength Index (RSI) for Litecoin is at level 39 for period 14, and the RSI index will rise as the altcoin resumes its uptrend. Litecoin is above the 50% area of the daily stochastic. This indicates that the cryptocurrency is in an uptrend. However, the altcoin faces rejection at the $74 resistance zone. The 21-day line SMA and the 50-day line SMA are sloping downwards, indicating a downtrend.
Resistance Levels: $140, $180, $220
Support Levels: $100, $60, $20
Litecoin is correcting upwards as the downtrend has reached its exhaustion. The current sideways movement is caused by the presence of small indecisive candles (doji). Meanwhile, the May 12 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that LTC will fall to the Fibonacci extension level of $1.272 or $36.84.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.