On July 5, Litecoin rebounded twice as price rallied to $46 high. Ironically, yesterday the coin had the second breakdown as price dropped to $41 price level. In other words, the bullish run of Litecoin has been erased by the bearish run.
The coin has fallen to $41 and made an upward correction. The upward move is marginal as the crypto resumes consolidation above $42 price level. Incidentally, the current support was where the coin had earlier rebounded to reach the $46.
On the upside, Litecoin can quickly return to its previous high of $46, if the coin rebounds. Technically, history can repeat itself, if another rebound occurs above $42 support. A rebound above $42 will catapult LTC to $46 high. The momentum can extend to break the $51 overhead resistance. In the meantime, price is consolidating above the $42 support as the market waits for another rebound.
Litecoin indicator analysis
With the recent breakdown, price breaks below the EMAs. This suggests a further downward movement of prices. The market is in bearish momentum as it is below the 50% range of the daily stochastic. The EMAs are sloping horizontally indicating that LTC is consolidating.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
What is the next move for Litecoin?
The recent upward move has been erased by the price breakdown. The market has returned to the previous price level. On the downside, if the bears break the $42 support, LTC will be in jeopardy. The coin risks further depreciation to the low of $39.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.