- Litecoin ran into resistance at $78.44, causing the cryptocurrency to roll over and drop by 4.5% over the past 2 days.
- This price fall comes after Litecoin managed to surge by a total of 101% in 2020 after rebounding from $28.77.
Litecoin saw a 1% price recovery today after suffering a price drop of 4.5% over the previous 2 days. The cryptocurrency was unable to break above resistance at $78.44 and rolled over after meeting this level.
Litecoin is ranked in the 6th position as it presently holds a $4.77 billion market cap valuation.
Litecoin Price Analysis
LTC/USD – Daily CHART – SHORT TERM
Litecoin has seen a brilliant price surge throughout 2020. The cryptocurrency started the year by rebounding at $38.50 as it started the 101% bullish run to reach the $78.44 level. The resistance here was provided by a 1.618 Fib Extension and was bolstered by a long term bearish .382 Fibonacci Retracement level – measured from the June 2019 high-day close to the December 2019 price low.
Taking a look at the daily chart above, we can see that Litecoin rolled over at this level but is managing to find support at $73.45.
Short term prediction: BULLISH
Litecoin remains bullish in the short term and only a drop beneath $67 would invalidate this trend. The cryptocurrency would have to drop further beneath $55 to turn bearish.
If the sellers do break beneath the support at $73 and $70, we can look for support at $67.84 (short term .382 Fib Retracement), $64.60 (.5 Fib Retracement), and $61.30 (.618 Fib Retracement and 200-days EMA).
On the other hand, if the bulls manage to defend $70 and climb higher, the first 2 levels of resistance are expected at $76.72 and $78.44. Above this, additional resistance lies at $83.05, $85.94 (1.272 Fib Extension), and $89.28 (long term bearish .5 Fib Retracement).
The RSI has dropped from overbought conditions as the previous bearish momentum starts to fade. We can expect the momentum to find support at the 50 level which should allow the bulls to rebound. Worryingly, the Stochastic RSI has produced a bearish crossover signal and is heading lower. We now should wait for this to reach oversold conditions to look for any further entries.
Support: $73, $70, $67.74, $64.59, $61.33, $60
Resistance: $78.44, $80, $83, $86, $89.28, $90
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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.