Litecoin Price Analysis: Litecoin Struggling Upon Reaching $70; Will the Significant Support Hold?
Litecoin has seen a further 5% price decrease over the past 24 hours, declining to $70. This latest price drop is mostly a result of Bitcoin having dropped back beneath the $10,000 region as things have started to look bleak for the overall cryptocurrency market.
Litecoin remains the fifth-largest cryptocurrency by market value with a market cap of $4.47 billion. Trading against Bitcoin, Litecoin managed to rebound at 0.007 BTC, but if this support were to break, we could see Litecoin trading at $50 in the next few weeks.
Looking at the LTC/USD 1-day chart:
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Since our previous Litecoin analysis, Litecoin has fallen back to the support at the $70 level. This market seems to be on bearish footing, mainly due to the recent BTC breakdown. However, Litecoin’s fortunes could change upon reaching the significant support level around $67.
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From above: The nearest levels of resistance are $74.72 and $77.45. Above this, higher resistance lies at $80, $84.77 and $88 (the 200-day EMA). If the bulls can break above the 200-day EMA, further resistance lies at $90, $95-$96.18 and $100.
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From below: The nearest level of support is located at $67.23, provided by a short-term downside 1.272 Fibonacci extension. This level of support is further bolstered by a long-term rising support line. This combined area of support is expected to allow the market to rebound. If the sellers break beneath this level, further support can be found at $65, $63, $60.91 and $56.60.
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The trading volume remains low, in line with the rest of the market.
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The RSI is below 50, showing that sellers are in complete control.
Looking at the LTC/BTC 1-day chart:
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Trading against Bitcoin, LTC has fallen lower but managed to find strong support at 0.007 BTC. Like the majority of altcoins, Litecoin’s Bitcoin market forecast is dire. However, if BTC does continue to fall in value, we may see a resurgence within the altcoin markets and a surge in the LTC/BTC market.
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From above: The nearest levels of resistance are 0.0074 BTC and 0.0078 BTC. Higher resistance is located at 0.008 BTC, 0.008244 BTC, and 0.0086 BTC. If the bulls can drive the price higher, further resistance is expected at 0.009 BTC and 0.0094 BTC.
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From below: The nearest level of support is 0.0070 BTC. If the sellers push the market beneath this level, additional support is expected at 0.0068 BTC, 0.0065 BTC, 0.006380 BTC, and 0.0060 BTC.
- The RSI is rising, which is a promising sign, as it shows that sellers are losing strength. However, we would need to see the RSI break above 50 for any bullish recovery to occur. The Stochastic RSI is looking to produce a bearish crossover signal which could be a bad sign for the bulls.
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