Litecoin Reaches Bullish Exhaustion, May Decline to $40 Low

The price of Litecoin (LTC) is in a downward correction as it has been stuck above $40 support. The cryptocurrency has been restricted below the 21-day line SMA. The altcoin's upward movement is stalled below the 21-day line SMA.

Surely, Litecoin will fall back to the previous low of $40 as it faces rejection at the 21-day line SMA. Since June 19, the bulls have been desperately trying  to break above the recent high. LTC/USD is trading at $54.25 at the time of writing. 

Litecoin indicator analysis

Litecoin has fallen to level 45 on the Relative Strength Index for the 14 period. The price of LTC is in a downtrend and is in a  position to fall as it faces rejection at the 21-day line SMA. The 21-day line SMA is the resistance line for the price bars. Litecoin is above the 40% area of the daily stochastic. This indicates that the market is in a bullish momentum. The 21-day line SMA and the 50-day line SMA are down, indicating a downtrend. 

Technical Indicators:  

Resistance Levels: $140, $180, $220

Support Levels: $100, $60, $20

What is the next move for Litecoin?

Litecoin could continue its downward movement as it faces rejection at the recent high. Buyers could not overcome the resistance at $52. The resistance at $52 was the previous low on May 12. The cryptocurrency will retrace and reach the current price low of $40 again.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

Source: Read Full Article