Following the latest market dip, Litecoin’s value lost momentum and fell close to its previous support level. At the time of writing, LTC was being traded at $41.14. The seventh-largest cryptocurrency had noted a minor uptick over the past couple of weeks which coincided with rising on-chain metrics. However, the abrupt fall further dragged the coin’s price and a bullish revival might have to wait.
Litecoin 6-Hour Chart:
Litecoin’s price candles on the above short-term chart appeared to be oscillating between trendlines of a descending parallel channel which demonstrated the coin’s price movement over the past couple of days after suffering multiple pullbacks. A bullish breakout was expected on completion of pattern formation. However, in the short-term, an upside break might not materialize.
This was supported by placement of the daily moving averages. 50 DMA [Pink] continued to hover above 100 DMA [Blue] after a bullish crossover in the first week of June. DMAs appeared to be converging with 100 DMA climbing higher, a trend that was prompted by the downward price action of the coin, and the falling 50 DMA. A bearish crossover was anticipated as both DMAs were above the LTC price candles, resisting an upward price action.
Further validating the presence of the bearishness was RSI indicator. Closely following the price action of the coin, RSI dropped to the oversold region. Despite a short-lived breakout above the 50-median line, RSI has been critically rejected at this point. However, at press time, the selling pressure appeared to be very high and a correction could be likely, meaning LTC’s price has formed a bottom.
As depicted by the above charts, Litecoin’s price in the short-term was predicted to remain in a bearish territory as selling activity continues to drag the coin’s price. LTC’s immediate support stood at $39.01. If this level is breached, the decline can extend to $37.53, a level not seen since the first week of April while the coin faced severe resistance at points $43.05, close to the 100 DMA, and by the 50 DMA at $44.3. Another point of hurdle for the coin stood firm at $46.12.
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