Litecoin (LTC) Breaks Down, Lacks Buying at Upper Price Levels

2 January 2020 | Updated: 2 January 2020

Key Resistance Levels: $70, $80, $90
Key Support Levels: $50, $30, $10

LTC/USD Price Long-term Trend: Bearish
Litecoin plunges again after being repelled at the $44 resistance level. The bulls failed to break the resistance level after two unsuccessful attempts at $44. The bears have already broken down the support at $42. Litecoin will drop to a low of $39 if the support level cracks.

Nevertheless, the downtrend will resume if the $39 low is broken which will catapult the coin to $36 low. However, the price is fluctuating below the $42 where the possibility of a rebound is very slim. More so, Litecoin lacks buyers at  higher price levels. On the upside, if the bulls break above $44 and the upward move is sustained, Litecoin will reach the high of $50.

LTC/USD - Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index period 14 levels 45 indicates that price is in a range bound zone. The RSI is also below the centerline 50 which indicates that the coin is likely to fall. The 21-day SMA and the 50-day SMA are sloping southward indicating the downward move. The price breaks above the 21-day SMA but fail to break the 50-day SMA. A break above SMAs will enable the coin to rise.

LTC/USD Medium-term bias: Bearish
On the 4-hour chart, the coin fell to a low of $36 and commenced a bullish move. The bulls reached a high of $44. However, after a retest at the $44, LTC fell and broke below $42 support. The downward move is likely because price retested the low at $42 before falling again.

LTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading

Litecoin has fallen below 20% of the daily stochastic. The blue and red bands are making a U-turn in the oversold region of the market. It indicates that the bearish momentum is likely to turn bullish. The 21-day and 50-day SMAs are trending upward indicating that price is rising.

General Outlook for LTC
Litecoin has fallen below $42 after a price rejection at $44. The pair may continue the downward move if the selling pressure persists. Possibly, the coin will revisit the previous low at $36. Meanwhile, for the upward move to commence, Litecoin will break above the EMAs for the price to rise. Nevertheless, if the price breaks below the support line and closes, the selling pressure will resume.

LTC Trade Signal
Instrument: LTC/USD
Order: Buy Limit
Entry price: $40
Stop: $30
Target: $50

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.