Litecoin Suffers 6% Price Decline As Outlook Suggests Potential Drop Toward $36.50

By Yaz Sheikh
Published April 21, 2020 Updated April 21, 2020
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Litecoin Suffers 6% Price Decline As Outlook Suggests Potential Drop Toward $36.50

By Yaz Sheikh
Published April 21, 2020 Updated April 21, 2020
  • Litecoin plummetted by a total of 5.6% today as the cryptocurrency crashes into the $40 level.
  • The cryptocurrency failed to overcome resistance at the $44.60 level over the weekend which caused the market to roll over.

Litecoin dropped by a total of 5.6% over the past 24 hours of trading as it drops into support at $40. The support is here provided by a month-long rising trend line.

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The cryptocurrency had climbed into resistance at $44.62 over the weekend and was unable to break above this resistance which caused the market to roll over and tumble.

It is now trading at support provided by a rising trend line but a break beneath this could cause Litecoin to drop toward $33.80.

Litecoin Price Analysis

LTC/USD – Daily CHART – SHORT TERM

LTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can clearly see that Litecoin had reached a high in early April of $47.70 which was provided by a bearish .382 Fib Retracement. It was unable to overcome this level and this caused the market to roll over and fall into support at $39 – provided by a short term .382 Fib Retracement.

From here, we can see that Litecoin rebounded but was unable to overcome the resistance at $44.62 this weekend which caused the market to drop back into the support at the rising trend line.

Short term prediction: Neutral/Bearish

Litecoin is considered neutral but a break beneath $39 would turn it bearish.

If the sellers manage to push beneath the support at the rising trend line, the first level of support lies at $39.13 (.382 Fib Retracement). Beneath this, support lies at $36.46 (.5 Fib Retracement), and $33.80 (.618 Fib Retracement).

On the other side, the first level of strong resistance lies at $44.62. Above this, resistance lies at $47.70.

The RSI has also now broken beneath the 50 level which is a strong signal that the sellers are taking control of the market momentum.

Key Levels

Support:$42, $40, $39, $36, $35, $32, $30, $28, $25.

Resistance: $47.70, $49.33, $50, $52, $54.70, $56.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
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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