4 hours ago | Azeez Mustapha
| Litecoin price: | $54 |
|---|---|
| Key LTC resistance levels: | $90, $100, $110 |
| Key LTC support levels: | $50, $40, $30 |
*Price at the time of writing
LTC/USD long-term trend: Bearish
At the $80 demand zone, LTC bulls had been struggling but failed to sustain the price above it. After the bearish impulse on July 16, the market corrected upward but was resisted at the $100 supply zone. The bears have the upper hand as price breaks below the $80 demand zone.
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After the market fell to a low at the $65 demand zone, attempts were made by the bulls to break above the $80 supply zone. The second upward move resulted in further depreciation of the price of Litecoin. A strong bearish move made the price to reach a low at the $54 demand zone. Litecoin is likely to continue its fall as the price action shows no signs of a reversal.
Daily chart indicators
Regarding the Fibonacci tool, the second bearish impulse reached a low at the $80 demand zone. Then, the bulls made an upward move and the candle body tested the 0.618 Fibonacci retracement level. This indicates that Litecoin will further depreciate to the low of the 1.618 Fibonacci extension level.
In other words, the market could fall as low as $50 or $44. The RSI period 14 level 26 indicates that Litecoin has reached the oversold region of the market. It also indicates that the bulls are likely to take control of the price action. The bears tested the lower trend line and if the trend line is broken the bearish pressure will continue.
LTC/USD medium-term trend: Bearish
On the 4-hour chart, the market was in an upward movement in August. The uptrend was interrupted as the price was resisted at the $80 supply zone. The downward move commences as the price falls below the $55 demand zone.
4-hour chart indicators
The LTC/USD pair was making a series of higher highs and higher lows above the middle trend line. However, the price fell as the bulls tested the upper trend line. The pair is now above the lower trend line. There is a likelihood of the market falling if the price breaks the lower trend line. The stochastic indicator shows that Litecoin is trading below the 20 range.
General outlook for Litecoin
The LTC price is likely to continue its downward move as shown by the indicators. Presently, the price action has not shown any candlestick that suggests a reversal of the current trend. Therefore, the downward move is likely to continue after the price fluctuations above the $55 demand zone.
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