As the overall market cooled off in the past few days, Litecoin fell slightly and further maintained a sideways trend. It appeared to have lost some steam and now sits on minor support with a 4% gain in a week.
Following recent market rallies that brought most altcoins to their new multi-month high, LTC saw a small recovery but continued to trade in a tight range of $56-$70 due to a low amount of buying volume at that time.
However, during the period, Litecoin’s price increased by almost 20% in 7 days and tapped the $73 level earlier this week. while this came as a retest of June’s breakdown level, it failed to break out of its trading range.
Unfortunately, it lost steam and the price slipped to a minor support of $66 yesterday. A weekly close below this support could bring the price back in the lower price range. More crackdowns could fuel a fresh bearish momentum from a long-term perspective.
On the other hand, if the buyers react strongly to this weekly low, the price could bounce back in no time. The trading volume currently looks low on the daily chart. A push above this week’s high could bring more recovery towards the August breakdown level.
As of now, things are looking dicey for LTC as it is yet to witness a notable rally to break price through from a tight trading range.
Litecoin’s Key Level To Watch
If the price drops below the mentioned minor support, the price level to watch for more dips is $60, and then $56.1 before breaking lower.
Towards the upside, the $70 and $73 resistance levels remain an important area to watch for an increase to $80.5 – retesting the August breakdown level – before pushing higher to $85.
Key Resistance Levels: $73, $80.5, $85
Key Support Levels: $66.5, $60, $56.1
- Spot Price: $67.7
- Trend: Neutral-Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.