Litecoin (LTC) is recovering as the price fell to the low at $125 and rebounded. The recovery has reached the high of $200 but it is facing a minor resistance at the recent high. Now the recovery will be complete if buyers push LTC price above the moving averages or $280 high.
The upside momentum will resume. Litecoin will be out of downward correction. Perhaps the altcoin will rise to $300 high. However, if the LTC/USD faces rejection at the minor resistance, the altcoin is likely to fall. The market will decline to the low of $80. From the price action, the bears are still threatening to short. The upward move was rejected at the resistance of $200. On the downside, if the bulls fail to break the recent low, LTC/USD will be compelled to a range-bound move between $125 and $200.
The altcoin has fallen to level 38 of the Relative Strength Index period 14. It indicates that Litecoin is in the downtrend zone and capable of falling on the downside. LTC/USD is above the 80% range of the daily stochastic. This indicates that the market has bearish momentum. The 21-day and 50-day SMAs are sloping southward.
Major Resistance Levels – $500 and $540
Major Support Levels – $340 and $40
LTC/USD is in a downward move. On May 10 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. This retracement indicates that the market will fall to level 2.618 Fibonacci extensions or level $207.84. From the price action, the LTC price fell beyond the 2.618 Fibonacci level but corrected upward. The selling pressure will resume if the current support at $125 is breached
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.