Litecoin Hovers above $80 as Buyers Recoup to Resume Uptrend

Yesterday, Litecoin traded and reached a high of $87 but failed to break the $90 overhead resistance. Within 24 hours the coin also slumped to $80 low.

This has been the bearish scenario since November 23 when Litecoin reached a high of $90. At the $90 overhead resistance, buyers could not penetrate the resistance after three unsuccessful attempts. The crypto will fall each time the resistance is tested. Today, Litecoin has fallen to the $80 support and it is most likely to move up. On December 4, the crypto moved up after testing the $80 support. Nonetheless, if the $80  support fails to hold the coin will decline to $65 low.

Litecoin indicator analysis

Litecoin is below the 30% range of the daily stochastic. This indicates that the coin has bearish momentum. The price has broken below the 21-day SMA and is approaching the 50-day SMA. A break below the SMAs will compel the coin to decline.

Key Resistance levels: $80, $100, $120

Key Support levels: $50, $40, $20

What is the next move for Litecoin?

The crypto has had two uptrends as it retested the $90 overhead resisted. The Fibonacci tool has indicated an upward movement of the coin. On December 4, a retraced candle body tested the 61.8%Fibonacci retracement level. The retracement indicates that the crypto will reach level 1.618 Fibonacci extensions or the high of $110.36 

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.