After hitting the $140 resistance, Litecoin (LTC) pulled back to resume a sideways move below the resistance in January 2021.
For the past week, the altcoin has been fluctuating between $120 and $140. There has been no significant price movement for the past few days but the bulls are still in control. As Litecoin continues its consolidation within the current range, a breakout or breakdown is imminent. A breakout is expected as LTC trades in the bullish trend zone.
The uptrend will resume once the bulls break the resistance at $140. This will propel the coin to rally above $150 high. Conversely, if the bulls fail to break the current level, the market will suddenly drop to $104 or $96 low. Meanwhile, the crypto is trading at $125 at the time of writing. The price action is characterized by small body indecisive candlesticks.
Litecoin is trading at level 62 of the Relative Strength Index period 14. It indicates that the coin has room to rise before the overbought region. The coin will rise because the price bars are well above the SMAs. A break below the SMAs will mean a downward of the Litecoin.
Resistance Levels: $160, $180, $200
Support Levels: $100, $80, $60
Litecoin will resume upside momentum once the current resistance is breached. The Fibonacci tool has indicated an upward movement of the coin. The tool analysis is the same as the market continues its consolidation. On December 19 uptrend, the coin was resisted at $124, but the retraced candle body tested the 61.8% Fibonacci retracement level. This indicates that the price will rise to a level of 1.618 Fibonacci extension level or a high of $156.50.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.