As expected last week, Litecoin initiated a surge yesterday and dropped below a wedge pattern, confirming a bearish pennant breakdown on the daily chart. it appeared weak and now follows a bearish sentiment.
The last two months of trading have been an interesting period for LTC as it regained momentum from the low of $70.5 in mid-April. It encountered resistance near $70 last month and retraced downward.
However, the market landscape changed following the sudden surge that hit the entire crypto space yesterday. The coin plummeted by roughly 12% to a low of $75 within five hours, validating a breakdown from an ascending wedge that sustained the bulls during recovery.
That low got rejected sharply and the price bounced to $80 at the moment. While the breakdown confirmed a fresh leg down in the short term, Litecoin is likely to shed more losses in the next few days.
Holding the recent low well could trigger a fresh increase capable of bringing the bulls back into the market. Last month’s high remains a key resistance to watch when the bulls regain control.
Right now, the bears are in charge of the market. A monthly bearish extension below the $60 level could trigger a huge crackdown on the mid-term perspective. Now that the market is following a bearish sentiment again, we need to consider potential support for the next drop.
LTC’s Key Level To Watch
On the daily chart, the $78.3 and $75 support levels have managed to hold in the last 24 hours. If the price dips below these supports in the next leg down, the lower level to watch would be $70.50.
The breakdown support of $82 is now acting as resistance. Above it lies this week’s $85.85 high and last month’s $89.6. Reclaiming these highs should bring the bulls back in control.
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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