Litecoin Makes a Deep Retracement, May Soon Resume Uptrend

On June 27, Litecoin plunged to a $39 low after the bears broke the $42 support. The crypto has been consolidating between $42 and $45 since June 11.

During the period of consolidation, buyers made four attempts to break the $45 resistance but were repelled. Nevertheless, the bears overpowered the bulls as the $42 support was breached. The coin fell to $39 low but price corrected upward to the high of $42. 

The bulls retested the $42 resistance twice and were repelled. The market is falling from $42 but the bulls are struggling to sustain the price above $41. On the downside, if the selling pressure resumes and breaks below $40, the market will drop to $34. However, if the support at $40 holds, LTC will be range-bound between $40 and $42. On the upside, if the crypto rebounds above the support at $41, Litecoin will rise and return to the $42- $45 price range.

Litecoin indicator analysis 

The price of Litecoin is below the EMAs which suggests a further downward movement of the coin. Presently, LTC is above the 25% range of the daily stochastic. It indicates that the coin has bullish momentum. This is contrary to the price action which indicates a bearish signal.

Key Resistance levels: $80, $100, $120

Key Support levels: $50, $40, $20

What is the next move for Litecoin?

Litecoin has dropped to a $39 low but fluctuates between $40 and $42. The $40 support is the critical support level for the coin. This price level has been holding since April. Possibly a rebound is likely if the price retraces to the support at $40.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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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