Litecoin Pauses Above $57 as Bulls and Bears Contemplate Next Move

Litecoin (LTC) price has been in an uptrend since July 28. The uptrend could not be maintained above the $65 resistance zone, hence the rejection.

The uptrend could have reached the highs of $80 and $104 if the resistance at $65 was overcome. Today, Litecoin has retreated above the moving average lines, but the bears are trying to break below them. The cryptocurrency will regain its upside momentum if it holds above the current support. The LTC price is moving above the 21-day line SMA, while reaching the low of $57. If the bears break below the moving average lines, the selling pressure will intensify to the downside. The altcoin will retrace and regain its previous lows of $41 and $47. 

Litecoin indicator analysis

Litecoin is at level 51 of the Relative Strength Index for the period 14, indicating that there is a balance between supply and demand. The price of the cryptocurrency is above the moving average lines, indicating a possible upward movement. The cryptocurrency is below the 20% area of the daily stochastic. Litecoin has fallen into the oversold zone of the market.

Technical indicators:  

Major Resistance Levels – $200 and $250

Major Support Levels – $100 and $50

What is the next move for Litecoin?

Litecoin is in a downtrend and the current decline has reached bearish exhaustion. On July 30, the downtrend tested the 61.8% Fibonacci retracement level with a retreating candle. The retracement suggests that LTC will fall to the Fibonacci extension level of 1.618 or $57.60. The market has fallen right to the Fibonacci extension. Other factors will determine whether LTC will fall or reverse at the current low.

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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