Litecoin Suffers 6% Price Decline As Outlook Suggests Potential Drop Toward $36.50

Fibo Quantum

  • Litecoin plummetted by a total of 5.6% today as the cryptocurrency crashes into the $40 level.
  • The cryptocurrency failed to overcome resistance at the $44.60 level over the weekend which caused the market to roll over.

Litecoin dropped by a total of 5.6% over the past 24 hours of trading as it drops into support at $40. The support is here provided by a month-long rising trend line.

The cryptocurrency had climbed into resistance at $44.62 over the weekend and was unable to break above this resistance which caused the market to roll over and tumble.

It is now trading at support provided by a rising trend line but a break beneath this could cause Litecoin to drop toward $33.80.

Litecoin Price Analysis

LTC/USD – Daily CHART – SHORT TERM

LTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can clearly see that Litecoin had reached a high in early April of $47.70 which was provided by a bearish .382 Fib Retracement. It was unable to overcome this level and this caused the market to roll over and fall into support at $39 – provided by a short term .382 Fib Retracement.

From here, we can see that Litecoin rebounded but was unable to overcome the resistance at $44.62 this weekend which caused the market to drop back into the support at the rising trend line.

Short term prediction: Neutral/Bearish

Litecoin is considered neutral but a break beneath $39 would turn it bearish.

If the sellers manage to push beneath the support at the rising trend line, the first level of support lies at $39.13 (.382 Fib Retracement). Beneath this, support lies at $36.46 (.5 Fib Retracement), and $33.80 (.618 Fib Retracement).

On the other side, the first level of strong resistance lies at $44.62. Above this, resistance lies at $47.70.

The RSI has also now broken beneath the 50 level which is a strong signal that the sellers are taking control of the market momentum.

Key Levels

Support:$42, $40, $39, $36, $35, $32, $30, $28, $25.

Resistance: $47.70, $49.33, $50, $52, $54.70, $56.

Summary

Litecoin Suffers 6% Price Decline As Outlook Suggests Potential Drop Toward $36.50

Article Name

Litecoin Suffers 6% Price Decline As Outlook Suggests Potential Drop Toward $36.50

Description

Litecoin plummetted by a total of 5.6% today as the cryptocurrency crashes into the $40 level.
The cryptocurrency failed to overcome resistance at the $44.60 level over the weekend which caused the market to roll over.

Author

Yaz Sheikh

Publisher Name

Coin Gape

Publisher Logo

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



Share on Facebook



Share on Twitter



Share on Linkedin



Share on Telegram