FxNews—Litecoin pulled back from the %50 Fibonacci retracement level at $71.5, as expected, because this was a Fair Value Gap resistance zone, backed by the 50-period simple moving average. We have mentioned the FVG area and its importance in our previous Litecoin technical analysis: Litecoin Eyes $71.5 as Bullish Trend Gains Strength.
As of this writing, Litecoin trades bearish below the 100-period simple moving average, nearing the October 19 low, the $67.5 resistance.
Litecoin Technical Analysis
The Stochastic and Relative Strength Index indicators are declining, depicting 49 and 34 in the description. This means the trend is bearish, and Litecoin is not oversold. Hence, the downtrend could resume.
On the other hand, MACD signals divergence, indicating that LTC/USD can potentially consolidate or reverse from a bear market to a bull market. Additionally, ADX promises a new trend by rising above the 30 level.
Overall, the technical indicators suggest the primary trend is bearish, but Litecoin’s price can potentially bounce from the $67.5 resistance or consolidate near upper resistance levels.
Litecoin Price Forecast
The downtrend will likely resume if bears push the price below the immediate support of $67.5.In this scenario, the next bearish target could be $66.2, the October 26 low.
Furthermore, if selling pressure exceeds $66.2, the next bearish target will likely be the October 1 low at $61.5. Please note that the bearish outlook should be invalidated if LTC/USD exceeds the $69.7 resistance.
Litecoin Support and Resistance Levels
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 67.5 / 66.2 / 66.8 / 61.5
- Resistance: 69.7 / 71.0 / 73.0
