Litecoin Price Analysis: LTC Plunges To New Bottoms, But Bullish Signs Ahead?
Litecoin has been slipping this week – largely due to the continued falling Bitcoin prices which has seen the price for Litecoin fall by a total of 11% to reach where it currently trades around $121. The cryptocurrency had a fantastic run in 2019 bull run before running into strong resistance at the $145 level and rolling over to fall.
Litecoin is currently trading at support provided by a rising trend line. However, a break beneath the trend line could suggest that the market is headed lower. Still, Litecoin has seen an amazing 65% price surge over the past 3 months, allowing the coin’s market cap to climb to $7.45 billion – putting it in fourth place amongst the top cryptocurrencies.
Looking at the LTC/USD 1-day chart:
- LTC has continued to fall further beneath the support at the $130 level, since our previous Litecoin analysis. Litecoin bounced at support provided by the short-term rising trend line, bolstered by the short-term .618 Fib retracement level. The LTC price has since returned to the trend line and currently rests there for support.
- From above: The nearest level of resistance now lies at $125 and $130. Above this, higher resistance lies at $136, $140, and the previous $145 resistance level. If the bulls break above $145, further resistance is found at $150, $153, and $161 (which contains long term bearish .886 Fib Retracement).
- From below: The nearest level of support now lies at $119. If the sellers drop beneath the trend line, the next levels of support lie at $114, $110, and $110. Beneath $100, support is at $97, $90, and $84 (which contains the 200 days EMA).
- The trading volume remains high, although it is showing signs of diminishing.
- The Stochastic RSI recently produced a bullish crossover signal in oversold conditions, contributing to the rebound. If the Stochastic RSI continues to rise, we can expect the coin’s price to hold above the short-term rising trend line.
Looking at the LTC/BTC 1-day chart:
- Against Bitcoin, Litecoin has been suffering greatly as the market has fallen beneath the strong support at the 0.01138 BTC level. The coin’s price went on to fall further until finding support at 0.0094 BTC (the .786 Fib retracement level). LTC/BTC has since rebounded and is currently trading at 0.01138 BTC.
- From above: The nearest level of resistance lies at 0.012 BTC. Above this, further resistance lies at 0.0127 BTC, (200-day EMA) and 0.013 BTC (100-day EMA). If the buyers continue above 0.013 BTC, the next level of resistance lies at 0.0135 BTC and 0.014 BTC.
- From below: The nearest level of support now lies at 0.01111 BTC. Further support beneath this lies at 0.0106 BTC, 0.010 BTC, and 0.0094 BTC.
- The Stochastic RSI has also produced a bullish crossover signal recently which is a promising sign for the bulls. However, to see a recovery in this coin we will need to see the RSI rise and climb above the 50 levels.