Litecoin Is in a Deadlock as Bears Threaten to Short
Today, Litecoin (LTC) fell to $131 after being rejected at the high of $139. The crypto fell as the price broke below the moving averages. Selling pressure is likely to accelerate below the moving averages.
In the lower time frame, the market is making a series of lower highs and lower lows. The price action is showing bearish signals as Litecoin resumes a downtrend.
The downtrend will continue as Litecoin falls and breaks below the previous low at $128 support. This will lead to a further decline to the low at $117. However, if the previous low holds, LTC will continue its sideways movement above the current support. The long candlestick tails point to the previous low above $128. The long candlestick tails indicate that there is strong buying pressure above the previous low.
Litecoin indicator analysis
Litecoin is at level 40 on the Relative Strength Index for period 14, implying that the market is in the down zone and below the mid 50s. Litecoin is above the 25% area of the daily stochastic. The market has resumed its bullish momentum. However, this is at odds with the price action as the market is facing rejection from the recent high.
Major Resistance Levels – $500 and $540
Major Support Levels – $160 and $120
What is the next move for Litecoin?
Litecoin will most likely continue a downward move as the upward correction meets rejection. Meanwhile, the downtrend retraced a candlestick on July 5 that tested the 50% Fibonacci retracement level. This retracement indicates that the market will fall to the 2.0 Fibonacci extension level or the $119.04 level.
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.
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