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Key Indicators Point to Litecoin Price Drop

FxNews—Litecoin price returned downside when it peaked at BC wave’s 61.8% Fibonacci retracement level at $67.5. This downtrend was expected because the Stochastic Oscillator was in the overbought territory. Consequently, Litecoin bears pushed the price below the 100-period simple moving average.

As of this writing, the LTC/USD pair trades at approximately $63.2. The 4-hour chart below shows the critical support and resistance levels and the technical indicators utilized in today’s analysis.

Key Indicators Point to Litecoin Price Drop
Key Indicators Point to Litecoin Price Drop

Litecoin Technical Analysis – 10-October-2024

The primary trend is bearish because the price is below the 50- and 100-period simple moving averages. That said, the Awesome oscillator bars are red and below the signal line, indicating that the bear market prevails.

Litecoin Technical Analysis - 10-October-2024
Litecoin Technical Analysis – 10-October-2024

Interestingly, as the image above shows, the bears filled the ‘fair value gap,’ which expands in a narrow range between $63.5 and $63.2. This drop in the LTC value to the FVG (Fair Value Gap) could cause the price to revert and turn bearish.

Overall, the technical indicators suggest the primary trend is bearish and should resume to lower support levels.

Litecoin Price Forecast – 10-October-2024

The primary trend is bearish, with immediate support at the CD wave’s %50 Fibonacci retracement level at $64.5, in conjunction with the 50-period SMA. From a technical standpoint, the downtrend extends if bears maintain the Litecoin value below $64.5. In this scenario, the next bearish target could be the October 3 low at $61.5.

Please note the bear market should be invalidated if the price exceeds the 50-period SMA at $64.5.

Litecoin Bullish Scenario

Immediate resistance lies at $64.5. If bulls (buyers) close and stabilize LTC/USD above the $64.5 mark or the 50-period SMA, the price can potentially target the 100-period SMA at approximately $66.5.

Litecoin Support and Resistance Levels – 10-october-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

  • Support: $61.5 / $59.0
  • Resistance: $64.5 / $66.5 / $67.5

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