After many failed breakout attempts over $50 for the past couple of weeks, Litecoin was being traded at $44.62 at the time of writing. The seventh-largest cryptocurrency by market cap, LTC’s price has been consolidating below the aforementioned level. Following the latest drop in the market, Litecoin slid below the crucial level of support at $45 which now acts as resistance.
Litecoin 1-Hour Chart:
Following the latest dip, price candles went below 50 DMA [Pink] which had previously formed a support for the coin after a bullish crossover with 100 DMA [Blue]. LTC also slid below 100 DMA. This was, however, short-lived as the upward price movement catapulted the price to climb over it. Its price was in a consolidating phase and a movement on either side could take shape. It is yet to overtake 50 DMA which was now resisting the coin’s upward price action.
RSI moved in tandem with the coin’s price action of the coin and fell to the oversold region when LTC dropped to $42. While it recovered and hovered above 50-median neutral zone soon after, it was now hovering below the said mark, depicting sell-pressure engulfing the LTC market.
If this trend persists, the coin could revert to its support zones. LTC has been severely resisted by the 50 DMA near $45 level. According to VPVR indicator, other points of resistance stood unbreached at $46.13 and $46.85. Target points for a downside price action stood at $43.49 close to 100 DMA and the subsequent support level was at $42.21.
According to Coin Metrics’s chart, LTC-BTC correlation coefficient stood at 0.874 indicating a strong correlation which was evident by Bitcoin’s recent bearish price action which drove the silver cryptocurrency to fall strongly against the USD. If Bitcoin manages a surge in the near-term, this could propel Litecoin to post a bullish reversal.
However, the chances of a potential surge in the short-term LTC chart appeared bleak as it signaled another downside correction to target points $43.49 and $42.21 on the 14th of June.
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