On July 20, Litecoin (LTC) fell and approached the previous low at $105.78, which was reached when the LTC price fell to $105.78 on June 22. Nonetheless, the bulls bought the dips at this low as the cryptocurrency resumed the correction to the upside.
The upward correction ended at the $150 high. The rejection of the recent high caused the current downtrend. Today, the bears are retesting and possibly breaking support at $105.78. Litecoin will fall sharply if the current support is broken. The cryptocurrency will likely fall to a low of $95. On the upside, a bounce above the current support will make the cryptocurrency resume an upward movement. In the meantime, there are bullish candlesticks above the current support. LTC/USD is up and trading at $107.06 at the time of writing.
Litecoin indicator analysis
Litecoin has fallen to the 25 level of the Relative Strength Index for period 14. This indicates that altcoin has fallen into the oversold area of the market. Selling pressure will ease as buyers emerge in the oversold region. The daily stochastic has also indicated an oversold condition in the market. Litecoin is below the 20% area of the daily stochastic.
Major Resistance Levels – $500 and $540
Major Support Levels – $120 and $80
What is the next move for Litecoin?
Litecoin will continue its downtrend. On the 4-hour chart, the cryptocurrency bounced at the $140 high when the market declined sharply. Meanwhile, on July 9 downtrend, a retraced candle body tested the 38.2% Fibonacci retracement level. This retracement indicates that the market will fall to level 2,616 Fibonacci extensions or level $99.24.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.