Litecoin Plummets as Bulls Fail to Hold $42 Demand Zone
Jan 03, 2020 at 12:10 //
News
Disappointingly, Litecoin has dropped to a low of $39 at the time of writing. In the previous analysis, it was stated categorically that if the support at $42 failed to hold, Litecoin will face another session of a downward move. The fact is that the pair made a remarkable move in the previous week to the high of $44 but was later repealed.
Today, the coin is now trading at $41 and there is the likelihood that the selling pressure may continue. If it does, Litecoin will revisit the low at $36. Nevertheless, if the $36 low cracks again, the downtrend will resume. This will cause a devastating effect on the coin negatively. Meanwhile, if the support at $39 holds, Litecoin may commence a range bound movement for a few more days.
Litecoin Indicator Analysis
As a result of the price fall, the RSI period 14 has dropped to level 38 which is also below the centerline 50. It indicates that the coin is likely to continue its fall. There are fears that the coin will reach its previous low. The 26-day EMA acted as resistance to the coin as the price fell below the EMAs. Once the price falls below the EMAs, the selling pressure will commence.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
What Is the Next Move for Litecoin?
Undeniably, Litecoin has resumed a downward move. In the first downtrend, the market reached a low of $36. It is not clear whether the price will revisit the previous low. Meanwhile, traders should adjust their parameters otherwise the downward move will hit their stop-loss orders. Traders should initiate new orders if the bears break the previous low. In the meantime, the price is making a marginal upward move.
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