LTC Technical Analysis: Litecoin Falls And Warns A Price Drop Under $40
Table of contents
Key technical points:
Past Performance of LTC
Amid the widespread recovery in the crypto market last week, the LTC price surged 43.8% from the new 2022 low of $40.68. However, the bullish rally couldn't surpass the combined resistance of the descending trendline and $60, triggering a minor correction. While the crypto got hit by another wave of selling pressure, the altcoin reverted and tumbled 16%.
Source- Tradingview
LTC Technical Analysis
The V-top reversal breached the immediate support of $50, suggesting the LTC sellers are ready for another leg-down. The recent price drop breached the 20-day EMA slope providing an extra edge for short-sellers. Moreover, a bearish sequence among the crucial EMAs(20, 50, 100, and 200) projects an overall downtrend.
The MACD and signal lines nearing a bearish crossover reflect a loss of bullish momentum. Thus, this crossover may attract more sellers to the market. The RSI indicator failed to sustain above the neutral line, indicating the sellers remain in charge and bolster a downfall to $40. In a nutshell, the LTC technical analysis shows a continuation of ongoing correction as sellers breached the $50 support.
Upcoming Trend
If sellers managed a daily-candle closing below the $50 psychological support, the accelerated supply pressure would sink the altcoin to June's bottom support of $40. However, the falling price backed by low volume activity indicates weakness in sellers' commitments and may bolster buyers to rebound from the $40 support.
Resistance Levels: $50 and $60
Support Levels: $40 and $37
