Litecoin (LTC) Plunges to a New Low, a Rally Is Expected

Litecoin (LTC) Plunges to a New Low, a Rally Is Expected

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

LTC/USD Price Long-term Trend: Bearish
In the last sideways trend, Litecoin was fluctuating between the levels of $42 and $50.On December 16, the bears broke the $42 support level and resumed a downtrend. The previous sideways trend has been terminated as Litecoin falls to a low of $39 and consolidates.

After consolidation, the selling pressure may continue as the market is expected to reach a low of $32 or $36 price level. As the market reaches the low of $32, the coin will be  reaching the oversold region and buyers may likely emerge. In other words, the coin may hold at the $32 support level.

LTC/USD - Daily Chart

Daily Chart Indicators Reading:
The MACD line and the signal line are below the zero line indicating that Litecoin is a sell signal. As price breaks the support line of the horizontal channel, it indicates that the selling pressure has resumed. The simple moving averages are pointing southward indicating the downward move.

LTC/USD Medium-term bias: Bearish
On the 4-hour chart, the bears have broken the sideways trend as the coin nosedived to the low of $39. At the low of $39, small body candlesticks are forming indicating that the price is consolidating. Prior to the time of price break down, the bears are at the edge of the support attempting to break the level. However, after consolidation, the coin may further depreciate.

LTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
Litecoin has fallen below the 20% range of the daily stochastic indicating that the coin is in a strong bearish momentum. That is, at the low of $39, Litecoin may further depreciate.

General Outlook for MKR
Litecoin is out of the sideways trend as the coin resumes a downward move. The coin is consolidating after the price breakdown. LTC is approaching the next support at $36 or $32 price level. Nevertheless, if the coin reaches the low of $32, Litecoin may hold rebound.

LTC Trade Signal
Instrument: LTC/USD
Order: Buy Limit
Entry price: $36
Stop: $30
Target: $60

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.