Since Litecoin experienced a sudden crash in August, it suspended the trend sideways and continued to look for a key area to initiate another sell-off. It now trades in a red zone with a 5% drop in the last 7 days.
Back on July 3, Litecoin reached a peak of $115 after increasing by over 60% in 8 months. A rejection occurred there and the crypto started to lose momentum after several failed attempts to sustain an uptrend in that month.
Fast forward to August with a 20% drop, LTC continued bearish momentum and dumped quickly to $80. It stayed calm for two weeks and later crashed by 35% to $56 in the mid-month – marking the lowest price level this year.
LTC wicked at that low and rapidly recovered to retest the important $70 support as resistance. The price fell from there and continued to trend sideways. Following twice rejection at $69 in the past weeks, it initiated selling this week and lost 3% to $61.5 yesterday.
It currently trades at $63 while the bears prepare to mount more pressure. Losing the August’s low may trigger another drawdown to $40
However, if the bulls show up to retake the mentioned important resistance, we can expect a small increase. If not, the price may continue to dip until it finds a bottom. Currently, the trend is neutral-bearish.
Litecoin’s Key Level To Watch
The $61.5 level was rejected yesterday. A drop below it could bring the price to $56.1 before breaking down to $50 for a short-term bearish.
Considering a buying reaction from the current trading level, the closest resistance to watch out for is $66.5, followed by $70.8, $75.4 and $80 – where it initially broke down in August.
Key Resistance Levels: $66.5, $70.8, $75.4
Key Support Levels: $61.5, $56.1, $50
- Spot Price: $63
- Trend: Neutral-Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.