Litecoin Retraces as It Reaches the Overbought Region at $170
Litecoin (LTC) has been trading in the overbought zone for the past 48 hours. Sellers have emerged to push prices lower. Litecoin is falling as it breaks below the 21-day line SMA.
A break below the moving averages will force the altcoin to fall to the $154 low. At the $154 support, the altcoin will resume its upward movement if the support holds. Otherwise, selling pressure will resume and the price will fall to the low of $146. The uptrend will resume if the current support holds.
Litecoin indicator analysis
Despite the recent decline, the crypto price is above the moving averages, which indicates that altcoin is in the uptrend zone. The cryptocurrency is at level 67 of the Relative Strength Index for period 14, which means that the LTC price is approaching the overbought zone at level 70. The 21-day and 50-day SMAs are sloping downward, indicating a downtrend.
Major Resistance Levels - $500 and $540
Major Support Levels - $120 and $80
What is the next move for Litecoin?
Litecoin is in a downtrend. The altcoin has retraced to the low of $160 to resume consolidation below the recent high. Meanwhile, on August 9 uptrend, a retreating candle tested the 78.6% Fibonacci retracement level. This retracement suggests that the market will rise but reverse at the 1.272 Fibonacci extension level or the $177.42 level.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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