Since it attained a peak price of $50, Litecoin has been on a downward move. In June, LTC encountered a breakdown which made it drop to $42 low. Price corrected upward but was resisted at the $45 high.
Several attempts were made by buyers to break the $45 resistance but were repelled. For the past two weeks, Litecoin has been confined between $42 and $45 price levels. Yesterday, as buyers attempted to retest the $45 resistance, there was a bearish reaction. LTC encountered another breakdown after testing the minor resistance.
The coin dropped as bears broke the support at $42. The bulls responded abruptly as they pulled back into the previous range. Litecoin survived further downward movement but trapped between $42 and $45 price levels. Possibly, Litecoin can be out of the present consolidation between $42 and $45, if price rebounds. In May, the coin rebounded thrice above $42, as the momentum broke the resistance at $45, $48, and attained a high of $50. Today, the crypto is struggling to make an upward move above the current support.
Litecoin indicator analysis
Litecoin is vulnerable to further depreciation as price is below the EMAs. When price bars are below the EMAs, the coin tends to fall at the slightest opportunity. The recent breakdown was made possible because the coin was in the bearish trend zone. The crypto is below a 25 % range of the daily stochastic. It indicates that the market is in a bearish momentum.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
What is the next move for Litecoin?
The bears and bulls are currently struggling above the $42 support. Buyers have already succeeded in the first round of defense above the current support. Nonetheless, if the bears break the current support, LTC is likely to drop to $39 low. However, the bulls are likely to defend the support at $39 as it has not been broken since April.
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.