Litecoin has posted a series of gains since the price started to recover in mid-2022. It marked a local top this week and lost momentum after reaching an extremely overbought. The price dropped to a new low.
For the first time this year, Litecoin saw a sharp nosedive after recording a substantial 10% loss in a week. The cryptocurrency performed well over the past months and has recently climbed slightly above the $100 mark level.
After a second retest around that mark level, it formed a double-top and fell heavily to a weekly low of $90. The price has recovered from this low as it pushes the price back to $94 at the time of writing.
The recovery looks like a retest of the recent break level at $95. LTC is likely to initiate another sell action once the price reaches that breaking level. It may even test $97 if the buyers mount pressure.
From a technical standpoint, the swing low is just starting. The crackdown on last week’s support indicates a confirmation of a downtrend. More actions should be expected in the next couple of days. However, there is still hope for the bulls if they can defend the current week’s low.
Litecoin’s Key Price Level To Watch
Considering the change in trend, the support level to watch out for is $90. If this support fails, the next selling point would be $85 and $80 before dropping below the ascending trend line formed on the daily chart. The $76 and $72 supports are levels to watch in case of a breakdown.
For now, the resistance levels to pay attention to are $97, $100 and $102.5. Above these levels lie the $105 before considering higher price levels.
Key Resistance Levels: $97, $100, $102.5
Key Support Levels: $90, $85, $80
- Spot Price: $94
- Trend: Bearish
- Volatility: Moderate
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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