Litecoin appeared bearish again following a recent break out of a crucial resistance level to a multi-month high. However, it has found support and bounced slightly but there’s not enough volume to bring the bulls back.
The early month break out from an accumulation phase saw Litecoin’s price increase above the $100 mark after nine months of trading. Buying exhaustion set in and the rally stopped last week.
Rolling back under the mark level in the latest dip, the price turned weak and slipped to a three-week low. Following a nice bounce in the past hours, it is now trading at around $81.
Looking at the latest bearish retracement, which came as a major retest of the early month breakout, LTC is much more likely to resume bullish as soon as it finds a threshold level, possibly above the holding $77 level that served as resistance during the accumulation phase.
Right now, things are still looking dicey due to the current market condition. A continuous drop in the market cap may affect the price and at the same time trigger more loss.
But considering the break and retest pattern, which is now confirmed on the daily chart, we can expect another leg up shortly. While the $60 level holds well as mid-term support, a crash below it could cause a bigger collapse in the market.
Litecoin’s Key Level To Watch
Litecoin is currently sitting above the 80-$77 support levels over the past hours. A drop below these levels could dip the price to a low of $73.46 and potentially $70.
If the current holding support bolsters, we can expect a bounce back to the $85.5 resistance level before advancing to $91 and $95. An increase above $100 could activate a bigger rally in the mid-term.
Key Resistance Levels: $85.5, $91, $95
Key Support Levels: $77, $73.46, $70
- Spot Price: $81.4
- 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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