Litecoin on Its Last Legs of Downtrend Correction, Resumes Consolidation

May 22, 2020 at 09:58 // News

Yesterday, Litecoin further depreciated to $42 after the bulls failed to push price above the $46 resistance. It has been on a downward move after the crypto achieved its peak price of $50.

On April 29, buyers pushed the price to $50 high but could not proceed with the uptrend as LTC was said to be overbought. Sellers emerged to push prices downward. Each time, buyers attempt to push the price above the downtrend line there will be an equivalent bearish reaction. The coin will be compelled to fall.  

The bulls made four attempts to break the line but were repelled. One of the attempts was on May 8, when LTC experienced a major breakdown. The crypto plunged to $39 low and immediately corrected upward. Nonetheless, if price successfully breaks above the line and closes above it, LTC will resume an upward move. And a retest of the $50 resistance is likely. However, Litecoin will resume a fresh uptrend if the $50 overhead resistance is breached.

Litecoin indicator analysis 

Presently, it has bearish momentum after buyers were repelled twice while attempting to break above the $46 resistance. The crypto is below the 60% range of the daily stochastic. The bears are testing the support line; a break below the support line will further depreciate the coin.

Litecoin on Its Last Legs of Downtrend Correction, Resumes Consolidation

Key Resistance levels: $80, $100, $120

Key Support levels: $50, $40, $20

What is the next move for Litecoin?

In the meantime, the price action is indicating bullish signals at the time of writing. Litecoin is expected to rise to retest the downtrend line. The trend can change if the bulls are successful above the trend line. Conversely, LTC risks further depreciation if repelled. 

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.

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