Litecoin price drops back to $170 area amid fresh selling pressure

Litecoin price drops back to $170 area amid fresh selling pressure

Analysis


Litecoin bulls are currently struggling to keep prices above the support line of a bearish chart pattern.

price Litecoin It fell 31% last week, with the bulls facing a brutal reality as the larger market plunged into the red. The bounce that followed saw buyers approach the $190 area. However, with the bulls exhausted, it appears that the momentum is shifting to bears.

If these expectations continue, Litecoin price may return to its lows last week. At the time of writing, the LTC/USD pair is trading around $172, down around 3.3% in the last 24 hours. Overall, Litecoin price has fallen by 25% over the past week.

Litecoin Price Predictions

LTC is trading below a strong resistance zone on the 4 hours chart with the technical view of the angle indicating a potential decline as the bears look to make gains.

general weakness in Bitcoin Weak LTC price could trigger further losses, with the prospect of strengthening the outlook if sellers push prices below $170.

4 hour chart for LTC/USD. Source: TradingView

As can be seen from the chart, LTC/USD is below the 50 simple moving average, whose curve is declining to indicate a bearish bias. Prices are also marked inside the descending triangle pattern to add to the bearish forecast.

The RSI and MACD on the 4-hour time frame also indicate a possible breakout, with the former tilting below the breakeven point and the latter highlighting a possible bearish crossover as it weakens below the zero line.

If the sellers manage to break the demand area around $160, LTC/USD could drop to $147 in the coming days.

On the upside, the 4 hours chart shows that the bulls are facing a strong supply zone with several resistance zones below it. The first barrier is likely to be at $178, an area marked by the 23.6% Fib retracement level of the $232 low to $161 level.

The downtrend line, the 38.2% Fib level ($188) and the SMA at $50 ($192) are the next hurdles the bulls are likely to face if there is a quick bounce. If the rally manages to rally, a breakout towards the 50% Fib level ($196) could open the way to the critical $200 area.

Leave a Reply

Your email address will not be published. Required fields are marked *