Here’s Why Litecoin Price Could Undergo A 20% Correction

Earlier today, the Litecoin (LTC) price attempted a high momentum breakout from the overhead resistance. A 36% boost in volume indicated the buyers’ interest in a prolonged price recovery. However, by the press time, the altcoin currently trades at $69 and struggles above the resistance trendline. Thus, a high price rejection at this resistance indicates sellers are actively grappling for trend control

key points from Litecoin price analysis

• The Litecoin traders face high supply pressure at the channel pattern’s resistance trendline.
• Oversold RSI reflects the need for a price correction.
• The 24-hour trading volume in the Litecoin coin is $1.399 Million, marking a 37.5% hike.

Source-Tradingview

From Mid-June to the current time, the Litecoin price rally has shaped into a rising channel pattern. However, this bearish continuation pattern carries a temporary bull run and, in theory, leads to significant correction upon the breakdown of its support trendline. 

Nonetheless, with the recent recovery rally in the crypto market, the Litecoin price bounced back from the dynamic support trendline and triggered a 40% upswing to hit the above resistance trendline.

Though the bullish recovery obtained sufficient volume support, the price action showcased several higher price rejection candles at the resistance trendline, indicating the exhausted bearish.  Even today, the Litecoin price jumped 7.5% and breached the trendline mentioned above.

However, the sellers defending this level aggressively reverted the price lower to $69. If the daily candle closes below the resistance trendline, the prices will likely trigger a bear cycle within the pattern. A breakdown below the 200day EMA will encourage the coin price to breach $65 support.

In ideal conduction, the Litecoin price could witness a 20% downfall to retest the support trendline.

On a contrary note, if the altcoin manages to breach the overhead trendline, the bearish thesis will get invalidated.

Technical indicator

Relative Strength Index: the daily-RSI slope rejected the overbought region accentuating the LTC price may witness a significant downfall to stabilize its bullish rally.

EMAs: The rising 20-and-50-day EMAs provide early signs of a price recovery. However, the 200-day EMAs act as a forbiddable resistance.

• Resistance levels- $74 and $80
• Support levels- $65 and $59