Litecoin is in a Narrow Range but Holds Above $60 Support

Litecoin is in a Narrow Range but Holds Above $60 Support

June 7, 2022

Litecoin (LTC) price is consolidating above the $60 support as bulls are consistently defending the current support. However, the upward movement of the LTC price was limited below the 21-day line SMA.

Long-term forecast of the Litecoin price: fluctuation range

On May 30, the bulls were rejected at the 21-day line SMA. LTC price retreated and found support above the $60 level. On the upside, buyers have a difficult task. Litecoin will regain its upside momentum if it rallies above the current support. 

The upside momentum will break above the 21-day line SMA and the resistance at $75. LTC price will now rise to the 50-day line SMA. A break above the 50-day line SMA would mean the resumption of the upward momentum. On the downside, the LTC price may experience a breakout. The LTC price will fall to a low of $52 if the bears break the current support.

Litecoin indicators analysis

Litecoin is at level 41 of the Relative Strength Index for the period 14. The index shows a horizontal slope. The price bars of the cryptocurrency are consolidating below the moving averages, indicating a possible breakout. Litecoin is above the 40% area of the daily stochastic. The 21-day line SMA and the 50-day line SMA are sloping downwards, indicating a downtrend.

Technical Indicators:  

Resistance levels: $140, $180, $220

Support levels: $100, $60, $20

What is the next move for Litecoin?

Due to the price consolidation above the current support, Litecoin is at risk of further decline. The upward movement is slowed down by the 21-day line SMA. Meanwhile, a downtrend was recorded on May 12; a retraced candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that LTC will fall to the Fibonacci extension level of $1.272 or $50.09.

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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