Litecoin Attempting To Rebound From .786 Fib Retracement Support – Can The Bulls Follow Through?


Litecoin's MimbleWimble Testnet Launch
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Litecoin Attempting To Rebound From .786 Fib Retracement Support – Can The Bulls Follow Through?

  • Litecoin has seen a small price rebound after finding support at $57.64.
  • The cryptocurrency is now ranked in the 7th position as it holds a market cap value of $3.77 billion.

Litecoin saw a 23% price drop over the past 7-days of trading as the cryptocurrency drops into support at $57.64, provided by a short term .786 Fibonacci Retracement level. The latest price decline brought Litecoin beneath the February 2020 opening price as it created a fresh lower low.

Litecoin is now ranked in the 7th position as it holds a $3.77 billion market cap value. If it can rebound from the current $57.64 support, it should be able to rise higher to claim the 6th position ahead of BSV.

Litecoin Price Analysis

LTC/USD – Daily CHART – SHORT TERM

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LTC/USD – Daily – Source: TradingView

Market Overview

Taking a look at the daily chart above, we can see that Litecoin rolled over at the start of last week as it failed to climb above resistance at $80. It went on to drop quite aggressively as it fell by a total of 23% throughout the past 7-days of trading.

We can see that it recently found some form of support at the .786 Fibonacci Retracement level, priced at $57.64. It did briefly spike lower but managed to find additional support at the longer-term .618 Fibonacci Retracement level at $56.12 before bouncing higher.

Short term prediction: NEUTRAL

If the buyers can rebound higher from the current support, the first level of resistance lies at $60. Above this, resistance is located at $64, $68, and $70. If they can break $70, we can expect additional resistance at $74, $78, and $80.

On the other side, if the bears break beneath the $57.64 support, additional support lies closely at $56.12 (long term .618 Fib Retracement). Beneath this, support lies at $54.25 (short term .886 Fib Retracement), $51.14 (downside 1.272 Fib Extension), and $48.38 (long term .786 Fib Retracement).

Key Levels

Support: $57.64, $56.12, $54.25, $51.14, $50, $48.38.
Resistance: $60, $62, $64, $67, $70, $74, $76.72, $78.44, $80, $83, $86, $89.28, $90

Author: Yaz Sheikh
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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