FxNews—Litecoin began consolidating as expected after it peaked on October 18. This was anticipated because the Stochastic oscillator was in overbought territory. As of this writing, LTC/USD trades at approximately $71.8, declining toward the $71.0 critical support level, backed by the Fair Value Gap.
The 4-hour price chart below demonstrates the price, support, resistance levels, and technical indicators utilized in today’s analysis.
Litecoin Technical Analysis – 30-October-2024
The primary trend is bullish because the price is above the Ichimoku Cloud and the 50- and 100-period simple moving average. However, the Awesome Oscillator signals that the current bearish momentum should be taken seriously because the histogram turned red, approaching the signal line from above.
Additionally, the Stochastic Oscillator is still hovering in overbought territory, depicting 86 in the description. This means bitcoin is still overpriced, and the downtrend could resume.
Overall, the technical indicators suggest that while the primary trend is bullish, the current downtick momentum could extend further.
Litecoin Forecast – 30-October-2024
The immediate resistance is at $71, a pivotal point that separates the bull market from the bear market. With the current market condition and the signals we received from the technical indicators, Litecoin is likely to lose another $1.8 from its value, resulting in the price testing the $71.0 support.
If this scenario unfolds, traders should closely monitor the $71.0 support area for bullish signals, such as candlestick patterns. The price will likely bounce from this level because the primary trend is bullish.
If LTC/USD bounces from the $71.0 support, the uptrend will likely resume, aiming to revisit the $74 mark, today’s highest price. Please note that the bullish outlook should be invalidated if Litecoin dips below that support.
- Next good read: Ethereum Eyes $2770 as Bulls Ignore Overbought Warnings
Bearish Scenario
If bears (sellers) close and stabilize the price below the $71.0 support, the bearish wave from $74 could extend to the next support level at $69, the October 28 low.
Litecoin Support and Resistance Levels – 30-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: 71.0 / 69.1 / 67.5 / 66.3
- Resistance: 72.58 / 74.0 / 75.5
