Litecoin in a Downward Correction, Pushes on the Upside
Litecoin (LTC) price has fallen above the 50-day moving average line twice. In addition, the LTC price has corrected to the upside but failed to break above the 21-day moving average line.
The cryptocurrency price is above the 50-day line SMA but below the 21-day line SMA. Litecoin will continue to fall to a low of $160 if the price falls below the 50-day line SMA.
On the other hand, if the price breaks above the 21-day line SMA, the LTC price will start a new upward movement. The altcoin will rise to recapture the $260 and $280 price levels. Meanwhile, the cryptocurrency continues to fluctuate between the moving averages. LTC/USD will resume its uptrend or downtrend when the moving averages are broken.
Litecoin indicator analysis
Litecoin has fallen to the 45 level on the Relative Strength Index for the 14 period. The altcoin is in a downtrend zone and below the midline 50. The price bars of the cryptocurrency are neither in the uptrend zone nor in the downtrend zone. Litecoin is below the 20% range of the daily stochastic. The market has reached bearish exhaustion. Buyers are expected to emerge in the oversold area of the market.
Resistance Levels: $240, $280, $320
Support Levels: $200, $160, $120
What is the next move for Litecoin?
On the daily chart, Litecoin is in a downtrend. The LTC price is contained between the moving averages. In the downtrend from November 13, a candlestick tested the 38.2% Fibonacci retracement level. The retracement suggests that the LTC price will fall to the 2.618 Fibonacci extension level or $160.91.
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.
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