Following a recent breakdown from a two-month wedge, Litecoin LTC found a solid support level and remained indecisive ever since. It showed signs of strength yesterday but there’s not enough volatility to reiterate actions.
During last week’s drops, Litecoin lost grip above the important $82 support level to a new support of $75 – which now stands as the current monthly low. This new support has suppressed selling pressure so far.
That drop also confirmed a wedge breakdown on the daily chart and the trend turned bearish again, although it’s now subjected to a consolidation.
Two things should be expected from this brief consolidation phase: a potential bounce, which is now footing on the 4-hour chart. If that eventually comes into play, Litecoin is expected to produce some recovery in the coming week. This may bring a retest of the recently broken wedge before resuming selling pressure.
Another possible move from this phase is a breakdown, which may roll the price back to April’s low before regaining strength. The $90 level remains a crucial breakpoint for the bulls from a short-term perspective.
If they manage to scale through that level in their next attempt, the $113 (April’s high) would be the key resistance to watch for a mega-bullish rally. But currently, there is not enough buying volume to initiate such a move.
LTC’s Key Level To Watch
The $80 level has been a tough resistance for the bulls since last week. If they push through it to retest the recent $82 support as resistance, the $85.85 and $89.6 resistances would be the next targets for buys.
Towards the downside, Litecoin currently trades above an hourly $78.3 and monthly $75 support. If these supports collapse, the $70.5 level would be the next area of interest for the bears.
Key Resistance Levels: $82, $85.85, $89.6
Key Support Levels: $78.3, $75, $70.50
- Spot Price: $80.2
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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