Litecoin Fluctuates at the Bottom Faces Rejection at $42 Supply Zone
Dec 27, 2019 at 12:30 //
News
After a brief consolidation, Litecoin is still in a downward move. The bulls have intended to break the initial resistance at $42 and rally above $50. The upward move may not likely hold as the selling pressure is ongoing. The bottom line is that if the coin falls and breaks below the $39 support, LTC will retest the previous low at $36.
In the same vein, if the previous low also cracks, LTC will depreciate further to the low of either $33 or $35. Meanwhile, on the other side of the coin, LTC may hold above $39. In that case, we expect a bullish breakout above the $42 resistance. The coin is expected to rally above the $50 price level. Meanwhile, the price movement has been rather slow, more so characterized by small body indecision candlesticks.
Litecoin Indicator Analysis
The small body candlesticks are resisted by the 12-day EMA. It is unlikely for the price to break above the EMAs if the coin continues its downward move. Presently the RSI has gone up to level 38 which means that the price is approaching the range-bound zone.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
What Is the Next Move for Litecoin?
By virtue of the Fibonacci tool, selling pressure has been overdone. The coin ought to have reversed at the 1.272 extension level. This is in view of a candlestick body testing the 0.786 retracement level. In the meantime, the bulls have made an unsuccessful attempt to break above the $42 resistance. This is due to a lack of buying power at the lower price levels. The coin is still fluctuating at the bottom of the chart
Disclaimer. This analysis and forecast are the personal opinions of the author 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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow