- Litecoin price generally bearish as indicated by the descending parallel channel.
- LTC bulls must hold on to the crucial support at $114 if they are to see any recovery.
- Sustained recovery might see Litecoin rally 23% upwards.
The overall momentum of the recent Litecoin price action has been bearish. After a strong bullish rally that was started on June 22, LTC reach a high pf $150 on June 29. Since then, Litecoin has been on a downward spiral, despite several attempts to reverse the bearish leg.
The LTC price decline has seen the asset test the psychological $120 level as a confluence created by the upper boundary of the descending parallel channel, the 20-day Simple Moving Average (SMA) and the 50-day SMA present powerful resistance upwards.
Can Litecoin Price Bulls Reverse the Bearish Outlook?
According to Coinmarketcap, Litecoin price dropped 3.32% over the last 24 hours to find support at $120. It appears that LTC is set to continue the bearish leg in the near term, it seems to me sitting on a weak support below $120.
Considering that Litecoin price unsuccessfully defended the $120 support area 6 times since May 23, it is likely the asset will revisit areas below this level. If this happens, it will extend the lower boundary of the descending parallel channel to coincide with the support level at $114 as seen on the 12-hour chart.
Bears will find it difficult to push the Ethereum price lower, making it possible for LTC to recover. The possibility of a trend reversal is accentuated by the Relative Strength Index which moving closer and close to the oversold region. This means that bears will soon tire out paving way for the bulls to take control of the market.
- If you are looking for crypto signals to know when to buy Litecoin, our detailed guide will be useful.
Litecoin Price (LTC/USD) 12-Hour
IOMAP Model Shows Litecoin is Sitting on Strong Support
The In/Out of the Money Around Price (IOMAP) on-chain metrics by IntoTheBlock indicate Litecoin is sitting on a strong support beyond the $114 support zone. This support lies between the $55 and $97 range where 538,830 addresses are holding approximately 7.65 million LTC. Therefore, bulls are likely to defend the $114 support to protect their investments.
On the flip side, Litecoin price faces relatively significant resistance upwards. A A major resistance zone is between the $135 and $152 range. At this area, approximately 4.89 million LTC are being held by 387,710 addresses.
Note that the 50-day SMA currently sits in this range and might hinder any attempts to push the BTC price higher. A breakout through the upper boundary of the descending parallel channel may take the LTC price to $150, representing a 23% rise from the current price.
- Seeking to buy Litecoin? The guide on crypto trading platforms is a good start.
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Nancy Lubale
