Litecoin Holds above $51 Support, May Resume Uptrend
On November 6, Litecoin’s impressive run to $64 high has created a bearish reaction. On November 7, the coin plunged to $57 low. The bulls responded promptly to push the price to $62 high.
Unfortunately, buyers could not sustain the uptrend as they failed to push the price above the $62 high. Consequently, LTC has continued to fall on the downside. The bottom line is that if price falls and breaks below the SMAs or the $51 support, the selling pressure will persist.
The coin may drop to a low of $50. Conversely, if LTC falls and finds support above $51, the upside momentum will resume. A strong bounce above the $51 support will propel the price to retest the $64 resistance. Eventually, if the $64 resistance is breached, a rally above $68 is possible. LTC is falling and has reached a low of $58 at the time of writing.
Litecoin indicator analysis
The price has broken below the resistance line of the ascending channel. The downtrend may commence below the SMAs. However, if the price finds support above the 21-day SMA, the downtrend will reach bearish exhaustion. LTC is now at level 58 of the Relative Strength Index period 14. It indicates that the coin is in the uptrend zone.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
What is the next move for Litecoin?
Litecoin downtrend has subsided as the bulls hold the $51 support. There are chances of a further upward move. On October 24 uptrend; the retraced candle body tested the 61.8% Fibonacci retracement level. This indicates that LTC will rise to 1.618 Fibonacci extensions. That is, Litecoin will reach a high of $69.70.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.