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The Litecoin(LTC) sellers ended a four-week consolidation after they breached the $51 support on June 9th. The resulting fall plummeted the altcoin to $40 psychological support, but a rise in demand pressure stalls the selling momentum. Moreover, the bullish signal from the MACD indicator suggests a breakout of $51.
Key points
- A lower price rejection candle at $40 indicates the demand zone
- Bollinger band indicator midline offers constant resistance
- The intraday trading volume in the Litecoin coin is $701 Million, indicating a 26% loss.
Source- Tradingview
From Mid-May to early June, the crypto market witnessed high volatility and uncertainty among coin traders, causing LTC/USDT pair to consolidate in a narrow range. Thus, the coin price resonated between $75 and $61.2 for nearly four weeks.
However, amid the recent crypto crash, the LTC sellers breached range support($61.2) on June 9th. Later, the four consecutive red candles reflected the intense selling and depreciated the coin price by 34%. As a result, the coin price reached a new 2022 low of $40.
The crypto traders faced demand pressure below this psychological support and tried to ascend earlier this week. However, the buyers struggle to surpass the immediate resistance of $51.5.
Therefore, the LTC price is struck in a no-trading zone, and any new entries are better to wait for the $40 or $51 breakout.
Thus, a bullish breakout from the $51 mark would trigger a 20% relief rally to the $61.2 flipped resistance. Alternatively, a possible fallout from $40 support would sink the LTC price by 40% down to the March 2020 low of $25.
Technical indicator
Contrary to the price action that’s displaying a new lower low, the MACD indicator showcased a higher in its fast and slow lines. This evident divergence indicates rising bullish momentum, encouraging the $51 breakout.
Since April, the Bollinger Band indicator midline has acted as dynamic resistance for LTC price. Moreover, the price action constantly resonating within the lower band and midline indicates the bear has trend control.
- Resistance level- $51 and $61.2
- Support levels- $40, and $25
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