This week’s meltdown saw Litecoin LTC through the highest selling volume after maintaining a sideways trend for over ten weeks. It has recovered notably since yesterday but is still down 17% weekly.
Before this week’s crash, Litecoin maintained a sideway movement for two months and briefly lost the key $70 level in late June. It recovered and closed well above this key level in the same month.
But unfortunately, the buying pressure faded away and stayed calm for three days. In favour of the bears, trading volatility increased this week and the market crashed to a year low of $56.9 – marking the biggest sell-off since April 14.
That low was sharply rejected yesterday and the price bounced off to where it is now changing hands at around $62. The price is currently up 7% but still looks extremely weak on the weekly outlook.
Now that the price is trading in an extremely oversold condition, there’s a need for a steady recovery above this month’s resistance level before we can start to consider a potential shift in the market structure.
As it stands now, Litecoin remains under the bears’ watch. A dip below the recent low could bring more drawdowns until it locates a key level. From a technical standpoint, the bears appeared to have reached an exhaustion point on the daily graph.
LTC’s Key Level To Watch
The mentioned yearly low is currently acting as support on the daily chart. If the price falls below it, $52 and $48 would be the next line of support to keep in mind.
In case of steady recovery, the nearest resistance level to watch is $67.5, followed by the $72 level. The key resistance level for a weekly breakup stands at $77.
Key Resistance Levels: $67.5, $72, $77
Key Support Levels: $56.9, $52, $48
- Spot Price: $62
- 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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