- Litecoin stays below broken support levels as the market turns red.
- Litecoin bulls hold their ground preventing declines below key support zone.
There is red spread everywhere on the cryptocurrency market. The drop comes after almost a week of stability. Cryptocurrencies still lack the energy to reverse the trend. Besides, the path of least resistance is downwards.
Litecoin succumbed to the bear pressure after testing the resistance at $34.40 several times since this week’s trading started Monday. While support had been established at $33.60, the drop today was unstoppable, where LTC/USD plunged below $33.00. At press time, LTC is trading at $32.54, moreover, the trend is still strongly bearish.
Litecoin is likely to test the key support at $32.00 in the mid-morning (GMT) session unless a correction to the upside occurs. Fortunately, the technical levels are still positive. The Moving Average Convergence Divergence (MACD) has recovered from lows of -0.349772 to the current -0.110988. The bulls are present and ready to defend the key support ($32.00). In addition to that, the Relative Strength Index (RSI) which had dipped to 14.63 during the Asian hours is horizontal at 36.5853.
I expect Litecoin to correct upwards before the end of the session today and even step above $33.00. Tough resistance lies ahead at the 50-day Simple Moving Average (SMA) currently at $33.11 and the 100-day SMA. The key resistance (also breakout point) at $34.40 has a higher concentration of sellers will limit that gains.