Litecoin (LTC) Turns Down, May Likely Move Up

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

LTC/USD Price Long-term Trend: Bearish
Litecoin made an impressive run as the bulls reached a high of $62. Unfortunately, the coin fell as the bulls could not sustain the upward move. The coin is falling and has reached a low of $55. The market is expected to hold at the support of $55 because it is a historical price level. However, support has been holding for the past five days.

On January 19, the price bounces off but was insufficient as the selling pressure resumes. If the bears break below $55, stronger support will ensue where the coin will bounce back. On the upside, if the price bounces, the market will reach a high of $66. At this price level, the momentum will extend to $80. On the downside, if the bears break the low of $55, the coin will drop to $53.

Daily Chart Indicators Reading:
Litecoin is trading below 80% of the daily stochastic which indicates that the price is in bearish momentum. However, the bearish momentum is unsteady as the stochastic bands are making a U-turn. The 21-day SMA and 50-day SMA are pointing upward indicating the uptrend.

LTC/USD Medium-term bias: Bearish
On the 4 hour chart, the bulls reached a high of $62.50 but made a retest before making a downward move. The coin fell to a low of $55 and pulled back to retest the high of $60. The support at $55 is presumed to hold. The upward move will resume if the support holds.

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 41which indicates that the coin is in the range-bound zone. The bears also break the trend line which also means that the bullish trend has been terminated.

General Outlook for LTC
Litecoin is still trading above the 21-day SMA and 50-day SMA. When the price bars are below the EMAs, the tendency to fall is there. Presently, the price is still fluctuating above the support at $55. The upward movement will resume if the bulls defend the current support.

LTC Trade Signal
Instrument: LTC/USD
Order: Buy
Entry price: $55
Stop: $50
Target: $80

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