Litecoin Initiates a Fresh Decline as It Faces Resistance at $55

Litecoin (LTC) price is in a downtrend and resumed selling pressure after rejecting the high at $55. On July 9, bulls attempted to break above the 21-day line SMA but were rejected. Buyers would have pushed Litecoin to the high of $66.

The bears sold at the high of $55. The 21-day line SMA put the brakes on further upward movement of the cryptocurrency. On the downside, the bears are retesting the current support at $47. The market will fall back to the previous low at $41 if the current support is broken. However, if the current support holds, LTC/USD will move in a narrow price range between $47 and $55. Meanwhile, Litecoin is trading at $48.24 at the time of writing. 

Litecoin indicator analysis

Litecoin has fallen to the 40 level of the Relative Strength Index for the 14 period. The LTC price is in the downward zone and may continue to fall to a low of $41. The price of the cryptocurrency is below the moving average lines, which are responsible for the further downward movement of the cryptocurrency. Litecoin is below the 20% area of the daily stochastic. This indicates that the market is approaching the oversold area. This means that selling pressure is likely to reach bearish exhaustion. The 21-day line SMA and the 50-day line SMA are down, indicating a downtrend. 

Technical Indicators:  

Resistance Levels: $140, $180, $220

Support Levels: $100, $60, $20

What is the next move for Litecoin?

It is likely that Litecoin will come under selling pressure again due to the recent rejection. Further upward movement of the cryptocurrency is doubtful. Litecoin failed to break the high at $55. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that LTC will fall, but will reverse at the level 1.272 Fibonacci extension or $38.20.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.

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